Correlation Between SentinelOne and NLIGHT
Can any of the company-specific risk be diversified away by investing in both SentinelOne and NLIGHT 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 NLIGHT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and nLIGHT Inc, you can compare the effects of market volatilities on SentinelOne and NLIGHT 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 NLIGHT. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and NLIGHT.
Diversification Opportunities for SentinelOne and NLIGHT
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and NLIGHT is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and nLIGHT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on nLIGHT Inc 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 NLIGHT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of nLIGHT Inc has no effect on the direction of SentinelOne i.e., SentinelOne and NLIGHT go up and down completely randomly.
Pair Corralation between SentinelOne and NLIGHT
Taking into account the 90-day investment horizon SentinelOne is expected to generate 100.85 times less return on investment than NLIGHT. But when comparing it to its historical volatility, SentinelOne is 1.6 times less risky than NLIGHT. It trades about 0.0 of its potential returns per unit of risk. nLIGHT Inc is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,760 in nLIGHT Inc on June 6, 2025 and sell it today you would earn a total of 1,110 from holding nLIGHT Inc or generate 63.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. nLIGHT Inc
Performance |
| Timeline |
| SentinelOne |
| nLIGHT Inc |
SentinelOne and NLIGHT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and NLIGHT
The main advantage of trading using opposite SentinelOne and NLIGHT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, NLIGHT 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 NLIGHT will offset losses from the drop in NLIGHT's long position.| SentinelOne vs. Palantir Technologies Class | SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Oracle | SentinelOne vs. CoreWeave, Class A |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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