Correlation Between SentinelOne and Nippon Life

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Can any of the company-specific risk be diversified away by investing in both SentinelOne and Nippon Life 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 Nippon Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Nippon Life India, you can compare the effects of market volatilities on SentinelOne and Nippon Life 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 Nippon Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Nippon Life.

Diversification Opportunities for SentinelOne and Nippon Life

-0.4
  Correlation Coefficient

Very good diversification

The 3 months correlation between SentinelOne and Nippon is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Nippon Life India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nippon Life India 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 Nippon Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nippon Life India has no effect on the direction of SentinelOne i.e., SentinelOne and Nippon Life go up and down completely randomly.

Pair Corralation between SentinelOne and Nippon Life

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Nippon Life. In addition to that, SentinelOne is 1.44 times more volatile than Nippon Life India. It trades about -0.04 of its total potential returns per unit of risk. Nippon Life India is currently generating about 0.06 per unit of volatility. If you would invest  82,570  in Nippon Life India on August 27, 2025 and sell it today you would earn a total of  5,035  from holding Nippon Life India or generate 6.1% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

SentinelOne  vs.  Nippon Life India

 Performance 
       Timeline  
SentinelOne 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days SentinelOne has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.
Nippon Life India 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Nippon Life India are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Nippon Life may actually be approaching a critical reversion point that can send shares even higher in December 2025.

SentinelOne and Nippon Life Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SentinelOne and Nippon Life

The main advantage of trading using opposite SentinelOne and Nippon Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Nippon Life 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 Nippon Life will offset losses from the drop in Nippon Life's long position.
The idea behind SentinelOne and Nippon Life India 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

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