Correlation Between Xunlei and SentinelOne

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

By analyzing existing cross correlation between Xunlei Ltd Adr and SentinelOne, you can compare the effects of market volatilities on Xunlei and SentinelOne 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 Xunlei with a short position of SentinelOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xunlei and SentinelOne.

Diversification Opportunities for Xunlei and SentinelOne

0.12

Correlation Coefficient

Xunlei  SentinelOne

Average diversification

The 3 months correlation between Xunlei and SentinelOne is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Xunlei Ltd Adr and SentinelOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SentinelOne and Xunlei 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 Xunlei Ltd Adr are associated (or correlated) with SentinelOne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SentinelOne has no effect on the direction of Xunlei i.e., Xunlei and SentinelOne go up and down completely randomly.

Pair Corralation between Xunlei and SentinelOne

Given the investment horizon of 90 days Xunlei Ltd Adr is expected to generate 2.12 times more return on investment than SentinelOne. However, Xunlei is 2.12 times more volatile than SentinelOne. It trades about 0.04 of its potential returns per unit of risk. SentinelOne is currently generating about 0.01 per unit of risk. If you would invest  451.00  in Xunlei Ltd Adr on May 2, 2025 and sell it today you would earn a total of  21.00  from holding Xunlei Ltd Adr or generate 4.66% return on investment over 90 days.

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

Xunlei Ltd Adr  vs.  SentinelOne

Xunlei Ltd Adr

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Xunlei Ltd Adr are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal technical and fundamental indicators, Xunlei unveiled solid returns over the last few months and may actually be approaching a breakup point.

SentinelOne

Risk-Adjusted Performance

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.

Pair Trading with Xunlei and SentinelOne

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

The idea behind Xunlei Ltd Adr and SentinelOne 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.