Correlation Between SentinelOne and Lecron Energy

Can any of the company-specific risk be diversified away by investing in both SentinelOne and Lecron Energy 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 Lecron Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SentinelOne and Lecron Energy Saving, you can compare the effects of market volatilities on SentinelOne and Lecron Energy 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 Lecron Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Lecron Energy.

Diversification Opportunities for SentinelOne and Lecron Energy

-0.3

Correlation Coefficient

SentinelOne  Lecron Energy

Very good diversification

The 3 months correlation between SentinelOne and Lecron is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Lecron Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lecron Energy Saving 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 Lecron Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lecron Energy Saving has no effect on the direction of SentinelOne i.e., SentinelOne and Lecron Energy go up and down completely randomly.

Pair Corralation between SentinelOne and Lecron Energy

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Lecron Energy. But the stock apears to be less risky and, when comparing its historical volatility, SentinelOne is 1.16 times less risky than Lecron Energy. The stock trades about -0.1 of its potential returns per unit of risk. The Lecron Energy Saving is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  611.00  in Lecron Energy Saving on December 24, 2024 and sell it today you would lose (26.00) from holding Lecron Energy Saving or give up 4.26% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.08%
Values	Daily Returns

SentinelOne  vs.  Lecron Energy Saving

SentinelOne

Risk-Adjusted Performance

Very Weak

Over the last 90 days SentinelOne has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Lecron Energy Saving

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lecron Energy Saving has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Lecron Energy is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SentinelOne and Lecron Energy

The main advantage of trading using opposite SentinelOne and Lecron Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Lecron Energy 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 Lecron Energy will offset losses from the drop in Lecron Energy's long position.

The idea behind SentinelOne and Lecron Energy Saving 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.