Correlation Between SentinelOne and Lightspeed Commerce

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

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

Diversification Opportunities for SentinelOne and Lightspeed Commerce

0.42

Correlation Coefficient

SentinelOne  Lightspeed Commerce

Very weak diversification

The 3 months correlation between SentinelOne and Lightspeed is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Lightspeed Commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lightspeed Commerce 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 Lightspeed Commerce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lightspeed Commerce has no effect on the direction of SentinelOne i.e., SentinelOne and Lightspeed Commerce go up and down completely randomly.

Pair Corralation between SentinelOne and Lightspeed Commerce

Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.82 times more return on investment than Lightspeed Commerce. However, SentinelOne is 1.22 times less risky than Lightspeed Commerce. It trades about -0.02 of its potential returns per unit of risk. Lightspeed Commerce is currently generating about -0.04 per unit of risk. If you would invest  1,642  in SentinelOne on August 26, 2025 and sell it today you would lose (77.00) from holding SentinelOne or give up 4.69% of portfolio value over 90 days.

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

SentinelOne  vs.  Lightspeed Commerce

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 current stock price uproar, may contribute to short-horizon losses for the private investors.

Lightspeed Commerce

Risk-Adjusted Performance

Weakest

Over the last 90 days Lightspeed Commerce has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with SentinelOne and Lightspeed Commerce

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

The idea behind SentinelOne and Lightspeed Commerce 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.