Correlation Between SentinelOne and Southern Copper
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Southern Copper 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 Southern Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Southern Copper, you can compare the effects of market volatilities on SentinelOne and Southern Copper 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 Southern Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Southern Copper.
Diversification Opportunities for SentinelOne and Southern Copper
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and Southern is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Southern Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Copper 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 Southern Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Copper has no effect on the direction of SentinelOne i.e., SentinelOne and Southern Copper go up and down completely randomly.
Pair Corralation between SentinelOne and Southern Copper
Taking into account the 90-day investment horizon SentinelOne is expected to generate 3.07 times less return on investment than Southern Copper. In addition to that, SentinelOne is 1.34 times more volatile than Southern Copper. It trades about 0.01 of its total potential returns per unit of risk. Southern Copper is currently generating about 0.04 per unit of volatility. If you would invest 7,701 in Southern Copper on November 9, 2024 and sell it today you would earn a total of 1,760 from holding Southern Copper or generate 22.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Southern Copper
Performance |
| Timeline |
| SentinelOne |
| Southern Copper |
SentinelOne and Southern Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Southern Copper
The main advantage of trading using opposite SentinelOne and Southern Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Southern Copper 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 Southern Copper will offset losses from the drop in Southern Copper's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Southern Copper vs. Ero Copper Corp | Southern Copper vs. Hudbay Minerals | Southern Copper vs. Taseko Mines | Southern Copper vs. Amerigo Resources |
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 CEOs Directory module to screen CEOs from public companies around the world.
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