Correlation Between Putnam Focused and SentinelOne

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

By analyzing existing cross correlation between Putnam Focused Large and SentinelOne, you can compare the effects of market volatilities on Putnam Focused and SentinelOne 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 Putnam Focused with a short position of SentinelOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Focused and SentinelOne.

Diversification Opportunities for Putnam Focused and SentinelOne

-0.68

Correlation Coefficient

Putnam Focused  SentinelOne

Excellent diversification

The 3 months correlation between Putnam and SentinelOne is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Focused Large and SentinelOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SentinelOne and Putnam Focused 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 Putnam Focused Large are associated (or correlated) with SentinelOne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SentinelOne has no effect on the direction of Putnam Focused i.e., Putnam Focused and SentinelOne go up and down completely randomly.

Pair Corralation between Putnam Focused and SentinelOne

Given the investment horizon of 90 days Putnam Focused Large is expected to generate 0.23 times more return on investment than SentinelOne. However, Putnam Focused Large is 4.34 times less risky than SentinelOne. It trades about 0.17 of its potential returns per unit of risk. SentinelOne is currently generating about -0.09 per unit of risk. If you would invest  4,232  in Putnam Focused Large on September 11, 2025 and sell it today you would earn a total of  303.00  from holding Putnam Focused Large or generate 7.16% return on investment over 90 days.

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

Putnam Focused Large  vs.  SentinelOne

Putnam Focused Large

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Putnam Focused Large are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Putnam Focused may actually be approaching a critical reversion point that can send shares even higher in January 2026.

SentinelOne

Risk-Adjusted Performance

Weakest

Over the last 90 days SentinelOne has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Putnam Focused and SentinelOne

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

The idea behind Putnam Focused Large and SentinelOne 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.