Correlation Between SentinelOne and SPDR SP

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

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

Diversification Opportunities for SentinelOne and SPDR SP

-0.3

Correlation Coefficient

SentinelOne  SPDR SP

Very good diversification

The 3 months correlation between SentinelOne and SPDR is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and SPDR SP Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SP Oil 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 SPDR SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SP Oil has no effect on the direction of SentinelOne i.e., SentinelOne and SPDR SP go up and down completely randomly.

Pair Corralation between SentinelOne and SPDR SP

Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.43 times more return on investment than SPDR SP. However, SentinelOne is 1.43 times more volatile than SPDR SP Oil. It trades about 0.01 of its potential returns per unit of risk. SPDR SP Oil is currently generating about -0.02 per unit of risk. If you would invest  1,682  in SentinelOne on May 11, 2025 and sell it today you would lose (79.00) from holding SentinelOne or give up 4.7% of portfolio value over 90 days.

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

SentinelOne  vs.  SPDR SP Oil

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 uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

SPDR SP Oil

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR SP Oil are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, SPDR SP is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with SentinelOne and SPDR SP

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

The idea behind SentinelOne and SPDR SP Oil 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.