Correlation Between SentinelOne and IShares Canadian

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

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

Diversification Opportunities for SentinelOne and IShares Canadian

-0.26

Correlation Coefficient

SentinelOne  IShares Canadian

Very good diversification

The 3 months correlation between SentinelOne and IShares is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and iShares Canadian Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Canadian Short 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 IShares Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Canadian Short has no effect on the direction of SentinelOne i.e., SentinelOne and IShares Canadian go up and down completely randomly.

Pair Corralation between SentinelOne and IShares Canadian

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the IShares Canadian. In addition to that, SentinelOne is 22.14 times more volatile than iShares Canadian Short. It trades about -0.02 of its total potential returns per unit of risk. iShares Canadian Short is currently generating about 0.09 per unit of volatility. If you would invest  2,676  in iShares Canadian Short on May 5, 2025 and sell it today you would earn a total of  18.00  from holding iShares Canadian Short or generate 0.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

SentinelOne  vs.  iShares Canadian Short

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 latest stock price uproar, may contribute to short-horizon losses for the private investors.

iShares Canadian Short

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Canadian Short are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental drivers, IShares Canadian is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with SentinelOne and IShares Canadian

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

The idea behind SentinelOne and iShares Canadian Short 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 Transaction History module to view history of all your transactions and understand their impact on performance.