Correlation Between SentinelOne and SIMON

Can any of the company-specific risk be diversified away by investing in both SentinelOne and SIMON 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 SIMON into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SentinelOne and SIMON PPTY GROUP, you can compare the effects of market volatilities on SentinelOne and SIMON 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 SIMON. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and SIMON.

Diversification Opportunities for SentinelOne and SIMON

-0.51

Correlation Coefficient

SentinelOne  SIMON

Excellent diversification

The 3 months correlation between SentinelOne and SIMON is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and SIMON PPTY GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIMON PPTY GROUP 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 SIMON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIMON PPTY GROUP has no effect on the direction of SentinelOne i.e., SentinelOne and SIMON go up and down completely randomly.

Pair Corralation between SentinelOne and SIMON

Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.67 times more return on investment than SIMON. However, SentinelOne is 2.67 times more volatile than SIMON PPTY GROUP. It trades about -0.04 of its potential returns per unit of risk. SIMON PPTY GROUP is currently generating about -0.12 per unit of risk. If you would invest  1,715  in SentinelOne on August 27, 2025 and sell it today you would lose (150.00) from holding SentinelOne or give up 8.75% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	60.32%
Values	Daily Returns

SentinelOne  vs.  SIMON PPTY GROUP

SentinelOne

Risk-Adjusted Performance

Weakest

Over the last 90 days SentinelOne has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

SIMON PPTY GROUP

Risk-Adjusted Performance

Weakest

Over the last 90 days SIMON PPTY GROUP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for SIMON PPTY GROUP investors.

Pair Trading with SentinelOne and SIMON

The main advantage of trading using opposite SentinelOne and SIMON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, SIMON 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 SIMON will offset losses from the drop in SIMON's long position.

The idea behind SentinelOne and SIMON PPTY GROUP 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.