Correlation Between SentinelOne and Shell PLC
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Shell PLC 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 Shell PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Shell PLC, you can compare the effects of market volatilities on SentinelOne and Shell PLC 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 Shell PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Shell PLC.
Diversification Opportunities for SentinelOne and Shell PLC
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between SentinelOne and Shell is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Shell PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shell PLC 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 Shell PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shell PLC has no effect on the direction of SentinelOne i.e., SentinelOne and Shell PLC go up and down completely randomly.
Pair Corralation between SentinelOne and Shell PLC
Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Shell PLC. In addition to that, SentinelOne is 1.41 times more volatile than Shell PLC. It trades about -0.12 of its total potential returns per unit of risk. Shell PLC is currently generating about -0.04 per unit of volatility. If you would invest 79,600 in Shell PLC on November 1, 2025 and sell it today you would lose (4,200) from holding Shell PLC or give up 5.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.67% |
| Values | Daily Returns |
SentinelOne vs. Shell PLC
Performance |
| Timeline |
| SentinelOne |
| Shell PLC |
SentinelOne and Shell PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Shell PLC
The main advantage of trading using opposite SentinelOne and Shell PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Shell PLC 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 Shell PLC will offset losses from the drop in Shell PLC's long position.| SentinelOne vs. Wex Inc | SentinelOne vs. Shift4 Payments | SentinelOne vs. StoneCo | SentinelOne vs. Core Scientific Common |
| Shell PLC vs. UNIQA Insurance Group | Shell PLC vs. Moneta Money Bank | Shell PLC vs. Vienna Insurance Group | Shell PLC vs. JT ARCH INVESTMENTS |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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