Correlation Between SentinelOne and CiT

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

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

Diversification Opportunities for SentinelOne and CiT

0.71

Correlation Coefficient

SentinelOne  CiT

Poor diversification

The 3 months correlation between SentinelOne and CiT is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and CiT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CiT Inc 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 CiT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CiT Inc has no effect on the direction of SentinelOne i.e., SentinelOne and CiT go up and down completely randomly.

Pair Corralation between SentinelOne and CiT

Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.89 times more return on investment than CiT. However, SentinelOne is 1.12 times less risky than CiT. It trades about -0.04 of its potential returns per unit of risk. CiT Inc is currently generating about -0.09 per unit of risk. If you would invest  1,761  in SentinelOne on August 28, 2025 and sell it today you would lose (138.00) from holding SentinelOne or give up 7.84% of portfolio value over 90 days.

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

SentinelOne  vs.  CiT Inc

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 comparatively stable basic indicators, SentinelOne is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

CiT Inc

Risk-Adjusted Performance

Weakest

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

Pair Trading with SentinelOne and CiT

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

The idea behind SentinelOne and CiT Inc 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.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.