Correlation Between SentinelOne and ProShares Ultra

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

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

Diversification Opportunities for SentinelOne and ProShares Ultra

-0.06

Correlation Coefficient

SentinelOne  ProShares Ultra

Good diversification

The 3 months correlation between SentinelOne and ProShares is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and ProShares Ultra FTSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra FTSE 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 ProShares Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Ultra FTSE has no effect on the direction of SentinelOne i.e., SentinelOne and ProShares Ultra go up and down completely randomly.

Pair Corralation between SentinelOne and ProShares Ultra

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the ProShares Ultra. In addition to that, SentinelOne is 1.22 times more volatile than ProShares Ultra FTSE. It trades about 0.0 of its total potential returns per unit of risk. ProShares Ultra FTSE is currently generating about 0.13 per unit of volatility. If you would invest  2,238  in ProShares Ultra FTSE on May 2, 2025 and sell it today you would earn a total of  394.00  from holding ProShares Ultra FTSE or generate 17.61% return on investment over 90 days.

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

SentinelOne  vs.  ProShares Ultra FTSE

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.

ProShares Ultra FTSE

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Ultra FTSE are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, ProShares Ultra reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and ProShares Ultra

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

The idea behind SentinelOne and ProShares Ultra FTSE 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.

Check out your portfolio center.

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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.