Correlation Between SentinelOne and Sky Metals
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Sky Metals 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 Sky Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Sky Metals, you can compare the effects of market volatilities on SentinelOne and Sky Metals 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 Sky Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Sky Metals.
Diversification Opportunities for SentinelOne and Sky Metals
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and Sky is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Sky Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sky Metals 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 Sky Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sky Metals has no effect on the direction of SentinelOne i.e., SentinelOne and Sky Metals go up and down completely randomly.
Pair Corralation between SentinelOne and Sky Metals
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.68 times more return on investment than Sky Metals. However, SentinelOne is 1.47 times less risky than Sky Metals. It trades about 0.07 of its potential returns per unit of risk. Sky Metals is currently generating about 0.04 per unit of risk. If you would invest 1,503 in SentinelOne on August 28, 2024 and sell it today you would earn a total of 1,285 from holding SentinelOne or generate 85.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.33% |
| Values | Daily Returns |
SentinelOne vs. Sky Metals
Performance |
| Timeline |
| SentinelOne |
| Sky Metals |
SentinelOne and Sky Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Sky Metals
The main advantage of trading using opposite SentinelOne and Sky Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Sky Metals 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 Sky Metals will offset losses from the drop in Sky Metals' long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
| Sky Metals vs. Northern Star Resources | Sky Metals vs. Evolution Mining | Sky Metals vs. Bluescope Steel | Sky Metals vs. Sandfire Resources NL |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |