Correlation Between SentinelOne and Hexcel

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Hexcel 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 Hexcel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Hexcel, you can compare the effects of market volatilities on SentinelOne and Hexcel 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 Hexcel. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Hexcel.

Diversification Opportunities for SentinelOne and Hexcel

SentinelOneHexcelDiversified AwaySentinelOneHexcelDiversified Away100%
-0.52
  Correlation Coefficient

Excellent diversification

The 3 months correlation between SentinelOne and Hexcel is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Hexcel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexcel 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 Hexcel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexcel has no effect on the direction of SentinelOne i.e., SentinelOne and Hexcel go up and down completely randomly.

Pair Corralation between SentinelOne and Hexcel

Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.21 times more return on investment than Hexcel. However, SentinelOne is 1.21 times more volatile than Hexcel. It trades about 0.24 of its potential returns per unit of risk. Hexcel is currently generating about -0.12 per unit of risk. If you would invest  2,273  in SentinelOne on November 21, 2024 and sell it today you would earn a total of  207.00  from holding SentinelOne or generate 9.11% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

SentinelOne  vs.  Hexcel

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -20-15-10-5051015
JavaScript chart by amCharts 3.21.15S HXL
       Timeline  
SentinelOne 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days SentinelOne 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 stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2223242526272829
Hexcel 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Hexcel are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating basic indicators, Hexcel may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb58606264666870

SentinelOne and Hexcel Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.48-3.35-2.23-1.11-0.01791.062.133.214.29 0.050.100.15
JavaScript chart by amCharts 3.21.15S HXL
       Returns  

Pair Trading with SentinelOne and Hexcel

The main advantage of trading using opposite SentinelOne and Hexcel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Hexcel 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 Hexcel will offset losses from the drop in Hexcel's long position.
The idea behind SentinelOne and Hexcel 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

Other Complementary Tools

Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators