Correlation Between SentinelOne and ArcelorMittal
Can any of the company-specific risk be diversified away by investing in both SentinelOne and ArcelorMittal 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 ArcelorMittal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and ArcelorMittal SA, you can compare the effects of market volatilities on SentinelOne and ArcelorMittal 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 ArcelorMittal. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and ArcelorMittal.
Diversification Opportunities for SentinelOne and ArcelorMittal
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and ArcelorMittal is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and ArcelorMittal SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ArcelorMittal SA 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 ArcelorMittal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ArcelorMittal SA has no effect on the direction of SentinelOne i.e., SentinelOne and ArcelorMittal go up and down completely randomly.
Pair Corralation between SentinelOne and ArcelorMittal
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.98 times more return on investment than ArcelorMittal. However, SentinelOne is 1.98 times more volatile than ArcelorMittal SA. It trades about 0.07 of its potential returns per unit of risk. ArcelorMittal SA is currently generating about 0.0 per unit of risk. If you would invest 1,492 in SentinelOne on August 31, 2024 and sell it today you would earn a total of 1,303 from holding SentinelOne or generate 87.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.16% |
| Values | Daily Returns |
SentinelOne vs. ArcelorMittal SA
Performance |
| Timeline |
| SentinelOne |
| ArcelorMittal SA |
SentinelOne and ArcelorMittal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and ArcelorMittal
The main advantage of trading using opposite SentinelOne and ArcelorMittal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, ArcelorMittal 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 ArcelorMittal will offset losses from the drop in ArcelorMittal's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| ArcelorMittal vs. Acerinox | ArcelorMittal vs. ACS Actividades de | ArcelorMittal vs. International Consolidated Airlines | ArcelorMittal vs. Mapfre |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |