Correlation Between SentinelOne and ScanSource
Can any of the company-specific risk be diversified away by investing in both SentinelOne and ScanSource 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 ScanSource into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and ScanSource, you can compare the effects of market volatilities on SentinelOne and ScanSource 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 ScanSource. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and ScanSource.
Diversification Opportunities for SentinelOne and ScanSource
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and ScanSource is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and ScanSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanSource 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 ScanSource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScanSource has no effect on the direction of SentinelOne i.e., SentinelOne and ScanSource go up and down completely randomly.
Pair Corralation between SentinelOne and ScanSource
Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the ScanSource. In addition to that, SentinelOne is 2.32 times more volatile than ScanSource. It trades about -0.07 of its total potential returns per unit of risk. ScanSource is currently generating about -0.12 per unit of volatility. If you would invest 4,133 in ScanSource on September 27, 2025 and sell it today you would lose (159.00) from holding ScanSource or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
SentinelOne vs. ScanSource
Performance |
| Timeline |
| SentinelOne |
| ScanSource |
SentinelOne and ScanSource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and ScanSource
The main advantage of trading using opposite SentinelOne and ScanSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, ScanSource 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 ScanSource will offset losses from the drop in ScanSource's long position.| SentinelOne vs. Apple Inc | SentinelOne vs. Alphabet Inc Class A | SentinelOne vs. NVIDIA | SentinelOne vs. Oracle |
| ScanSource vs. NETGEAR | ScanSource vs. Magic Software Enterprises | ScanSource vs. Stratasys | ScanSource vs. Alpha and Omega |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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