Correlation Between SentinelOne and Spotify Technology
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Spotify Technology 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 Spotify Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Spotify Technology SA, you can compare the effects of market volatilities on SentinelOne and Spotify Technology 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 Spotify Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Spotify Technology.
Diversification Opportunities for SentinelOne and Spotify Technology
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SentinelOne and Spotify is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Spotify Technology SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spotify Technology 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 Spotify Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spotify Technology has no effect on the direction of SentinelOne i.e., SentinelOne and Spotify Technology go up and down completely randomly.
Pair Corralation between SentinelOne and Spotify Technology
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.53 times more return on investment than Spotify Technology. However, SentinelOne is 1.53 times more volatile than Spotify Technology SA. It trades about -0.1 of its potential returns per unit of risk. Spotify Technology SA is currently generating about -0.17 per unit of risk. If you would invest 1,846 in SentinelOne on September 23, 2025 and sell it today you would lose (353.00) from holding SentinelOne or give up 19.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Spotify Technology SA
Performance |
| Timeline |
| SentinelOne |
| Spotify Technology |
SentinelOne and Spotify Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Spotify Technology
The main advantage of trading using opposite SentinelOne and Spotify Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Spotify Technology 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 Spotify Technology will offset losses from the drop in Spotify Technology's long position.| SentinelOne vs. Alpha Technology Group | SentinelOne vs. Bandwidth | SentinelOne vs. Gorilla Technology Group | SentinelOne vs. FINEOS Holdings |
| Spotify Technology vs. DoorDash, Class A | Spotify Technology vs. ATT Inc | Spotify Technology vs. Verizon Communications | Spotify Technology vs. Comcast Corp |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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