Correlation Between SentinelOne and Payoneer Global

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

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

Diversification Opportunities for SentinelOne and Payoneer Global

0.69

Correlation Coefficient

SentinelOne  Payoneer Global

Poor diversification

The 3 months correlation between SentinelOne and Payoneer is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Payoneer Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payoneer Global 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 Payoneer Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payoneer Global has no effect on the direction of SentinelOne i.e., SentinelOne and Payoneer Global go up and down completely randomly.

Pair Corralation between SentinelOne and Payoneer Global

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Payoneer Global. In addition to that, SentinelOne is 1.21 times more volatile than Payoneer Global. It trades about -0.14 of its total potential returns per unit of risk. Payoneer Global is currently generating about -0.06 per unit of volatility. If you would invest  1,091  in Payoneer Global on November 28, 2024 and sell it today you would lose (103.00) from holding Payoneer Global or give up 9.44% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

SentinelOne  vs.  Payoneer Global

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 March 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Payoneer Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days Payoneer Global has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with SentinelOne and Payoneer Global

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

The idea behind SentinelOne and Payoneer Global 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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.