Correlation Between Scope Metals and SentinelOne
Can any of the company-specific risk be diversified away by investing in both Scope Metals and SentinelOne 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 Scope Metals and SentinelOne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scope Metals Group and SentinelOne, you can compare the effects of market volatilities on Scope Metals and SentinelOne 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 Scope Metals with a short position of SentinelOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scope Metals and SentinelOne.
Diversification Opportunities for Scope Metals and SentinelOne
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Scope and SentinelOne is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Scope Metals Group and SentinelOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SentinelOne and Scope Metals 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 Scope Metals Group are associated (or correlated) with SentinelOne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SentinelOne has no effect on the direction of Scope Metals i.e., Scope Metals and SentinelOne go up and down completely randomly.
Pair Corralation between Scope Metals and SentinelOne
Assuming the 90 days trading horizon Scope Metals Group is expected to generate 0.53 times more return on investment than SentinelOne. However, Scope Metals Group is 1.88 times less risky than SentinelOne. It trades about 0.31 of its potential returns per unit of risk. SentinelOne is currently generating about -0.17 per unit of risk. If you would invest 1,152,000 in Scope Metals Group on December 29, 2023 and sell it today you would earn a total of 153,000 from holding Scope Metals Group or generate 13.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 78.26% |
Values | Daily Returns |
Scope Metals Group vs. SentinelOne
Performance |
Timeline |
Scope Metals Group |
SentinelOne |
Scope Metals and SentinelOne Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Scope Metals and SentinelOne
The main advantage of trading using opposite Scope Metals and SentinelOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scope Metals position performs unexpectedly, SentinelOne 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 SentinelOne will offset losses from the drop in SentinelOne's long position.Scope Metals vs. Abra Information Technologies | Scope Metals vs. Technoplus Ventures | Scope Metals vs. Tower Semiconductor | Scope Metals vs. Millennium Food Tech LP |
SentinelOne vs. Global Blue Group | SentinelOne vs. Aurora Mobile | SentinelOne vs. Marqeta | SentinelOne vs. Nextnav Acquisition Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Commodity Directory Find actively traded commodities issued by global exchanges |