Correlation Between SentinelOne and Catalystmap Global

Can any of the company-specific risk be diversified away by investing in both SentinelOne and Catalystmap Global at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SentinelOne and Catalystmap Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SentinelOne and Catalystmap Global Balanced, you can compare the effects of market volatilities on SentinelOne and Catalystmap Global and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SentinelOne with a short position of Catalystmap Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Catalystmap Global.

Diversification Opportunities for SentinelOne and Catalystmap Global

-0.11

Correlation Coefficient

SentinelOne  Catalystmap Global

Good diversification

The 3 months correlation between SentinelOne and Catalystmap is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Catalystmap Global Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystmap Global and SentinelOne is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SentinelOne are associated (or correlated) with Catalystmap Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystmap Global has no effect on the direction of SentinelOne i.e., SentinelOne and Catalystmap Global go up and down completely randomly.

Pair Corralation between SentinelOne and Catalystmap Global

Taking into account the 90-day investment horizon SentinelOne is expected to generate 8.5 times more return on investment than Catalystmap Global. However, SentinelOne is 8.5 times more volatile than Catalystmap Global Balanced. It trades about 0.05 of its potential returns per unit of risk. Catalystmap Global Balanced is currently generating about 0.27 per unit of risk. If you would invest  1,850  in SentinelOne on April 30, 2025 and sell it today you would earn a total of  110.00  from holding SentinelOne or generate 5.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SentinelOne  vs.  Catalystmap Global Balanced

SentinelOne

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SentinelOne are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, SentinelOne may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Catalystmap Global

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystmap Global Balanced are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Catalystmap Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SentinelOne and Catalystmap Global

The main advantage of trading using opposite SentinelOne and Catalystmap Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Catalystmap Global can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Catalystmap Global will offset losses from the drop in Catalystmap Global's long position.

The idea behind SentinelOne and Catalystmap Global Balanced pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.