Correlation Between SentinelOne and SPDR SSGA

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

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

Diversification Opportunities for SentinelOne and SPDR SSGA

-0.2

Correlation Coefficient

SentinelOne  SPDR SSGA

Good diversification

The 3 months correlation between SentinelOne and SPDR is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and SPDR SSGA Sector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SSGA Sector 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 SSGA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SSGA Sector has no effect on the direction of SentinelOne i.e., SentinelOne and SPDR SSGA go up and down completely randomly.

Pair Corralation between SentinelOne and SPDR SSGA

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the SPDR SSGA. In addition to that, SentinelOne is 3.97 times more volatile than SPDR SSGA Sector. It trades about 0.0 of its total potential returns per unit of risk. SPDR SSGA Sector is currently generating about 0.26 per unit of volatility. If you would invest  5,036  in SPDR SSGA Sector on May 3, 2025 and sell it today you would earn a total of  567.00  from holding SPDR SSGA Sector or generate 11.26% return on investment over 90 days.

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

SentinelOne  vs.  SPDR SSGA Sector

SentinelOne

Risk-Adjusted Performance

Very Weak

Over the last 90 days SentinelOne has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, SentinelOne is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

SPDR SSGA Sector

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR SSGA Sector are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile basic indicators, SPDR SSGA may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with SentinelOne and SPDR SSGA

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

The idea behind SentinelOne and SPDR SSGA Sector 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.