Correlation Between SentinelOne and JD

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

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

Diversification Opportunities for SentinelOne and JD

0.35

Correlation Coefficient

SentinelOne  JD

Weak diversification

The 3 months correlation between SentinelOne and JD is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and JD Inc Adr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Inc Adr 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 JD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Inc Adr has no effect on the direction of SentinelOne i.e., SentinelOne and JD go up and down completely randomly.

Pair Corralation between SentinelOne and JD

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the JD. In addition to that, SentinelOne is 1.2 times more volatile than JD Inc Adr. It trades about -0.04 of its total potential returns per unit of risk. JD Inc Adr is currently generating about 0.0 per unit of volatility. If you would invest  3,347  in JD Inc Adr on July 24, 2025 and sell it today you would lose (64.00) from holding JD Inc Adr or give up 1.91% of portfolio value over 90 days.

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

SentinelOne  vs.  JD Inc Adr

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 latest conflicting performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

JD Inc Adr

Risk-Adjusted Performance

Weakest

Over the last 90 days JD Inc Adr has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, JD is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with SentinelOne and JD

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

The idea behind SentinelOne and JD Inc Adr 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.