Correlation Between SentinelOne and Topicus

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

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

Diversification Opportunities for SentinelOne and Topicus

0.76

Correlation Coefficient

SentinelOne  Topicus

Poor diversification

The 3 months correlation between SentinelOne and Topicus is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Topicus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Topicus 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 Topicus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Topicus has no effect on the direction of SentinelOne i.e., SentinelOne and Topicus go up and down completely randomly.

Pair Corralation between SentinelOne and Topicus

Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.84 times more return on investment than Topicus. However, SentinelOne is 1.19 times less risky than Topicus. It trades about -0.06 of its potential returns per unit of risk. Topicus is currently generating about -0.19 per unit of risk. If you would invest  1,873  in SentinelOne on September 5, 2025 and sell it today you would lose (176.00) from holding SentinelOne or give up 9.4% of portfolio value over 90 days.

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

SentinelOne  vs.  Topicus

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 inconsistent 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.

Topicus

Risk-Adjusted Performance

Weakest

Over the last 90 days Topicus has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2026. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with SentinelOne and Topicus

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

The idea behind SentinelOne and Topicus 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.