Correlation Between SentinelOne and Ferrari NV
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Ferrari NV 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 Ferrari NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Ferrari NV, you can compare the effects of market volatilities on SentinelOne and Ferrari NV 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 Ferrari NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Ferrari NV.
Diversification Opportunities for SentinelOne and Ferrari NV
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and Ferrari is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Ferrari NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ferrari NV 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 Ferrari NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ferrari NV has no effect on the direction of SentinelOne i.e., SentinelOne and Ferrari NV go up and down completely randomly.
Pair Corralation between SentinelOne and Ferrari NV
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.14 times more return on investment than Ferrari NV. However, SentinelOne is 1.14 times more volatile than Ferrari NV. It trades about 0.07 of its potential returns per unit of risk. Ferrari NV is currently generating about -0.1 per unit of risk. If you would invest 1,488 in SentinelOne on October 8, 2025 and sell it today you would earn a total of 30.00 from holding SentinelOne or generate 2.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Ferrari NV
Performance |
| Timeline |
| SentinelOne |
| Ferrari NV |
SentinelOne and Ferrari NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Ferrari NV
The main advantage of trading using opposite SentinelOne and Ferrari NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Ferrari NV 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 Ferrari NV will offset losses from the drop in Ferrari NV's long position.| SentinelOne vs. CoreWeave Class A | SentinelOne vs. Motorola Solutions | SentinelOne vs. Autodesk | SentinelOne vs. Infosys Ltd ADR |
| Ferrari NV vs. General Motors | Ferrari NV vs. Marriott International | Ferrari NV vs. OReilly Automotive | Ferrari NV vs. Ford Motor |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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