Correlation Between SentinelOne and Touchstone Large

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

Diversification Opportunities for SentinelOne and Touchstone Large

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between SentinelOne and Touchstone is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Touchstone Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Large Cap 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 Touchstone Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Large Cap has no effect on the direction of SentinelOne i.e., SentinelOne and Touchstone Large go up and down completely randomly.

Pair Corralation between SentinelOne and Touchstone Large

If you would invest  1,846  in SentinelOne on April 26, 2025 and sell it today you would earn a total of  101.00  from holding SentinelOne or generate 5.47% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy1.61%
ValuesDaily Returns

SentinelOne  vs.  Touchstone Large Cap

 Performance 
       Timeline  
SentinelOne 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in SentinelOne are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, SentinelOne may actually be approaching a critical reversion point that can send shares even higher in August 2025.
Touchstone Large Cap 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Over the last 90 days Touchstone Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Touchstone Large is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

SentinelOne and Touchstone Large Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SentinelOne and Touchstone Large

The main advantage of trading using opposite SentinelOne and Touchstone Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Touchstone Large 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 Touchstone Large will offset losses from the drop in Touchstone Large's long position.
The idea behind SentinelOne and Touchstone Large Cap 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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