Correlation Between SentinelOne and Contango ORE

Can any of the company-specific risk be diversified away by investing in both SentinelOne and Contango ORE 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 Contango ORE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SentinelOne and Contango ORE, you can compare the effects of market volatilities on SentinelOne and Contango ORE 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 Contango ORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Contango ORE.

Diversification Opportunities for SentinelOne and Contango ORE

-0.6

Correlation Coefficient

SentinelOne  Contango ORE

Excellent diversification

The 3 months correlation between SentinelOne and Contango is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Contango ORE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contango ORE 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 Contango ORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contango ORE has no effect on the direction of SentinelOne i.e., SentinelOne and Contango ORE go up and down completely randomly.

Pair Corralation between SentinelOne and Contango ORE

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Contango ORE. But the stock apears to be less risky and, when comparing its historical volatility, SentinelOne is 1.41 times less risky than Contango ORE. The stock trades about -0.04 of its potential returns per unit of risk. The Contango ORE is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  1,379  in Contango ORE on May 9, 2025 and sell it today you would earn a total of  615.00  from holding Contango ORE or generate 44.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

SentinelOne  vs.  Contango ORE

SentinelOne

Risk-Adjusted Performance

Weakest

Over the last 90 days SentinelOne has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Contango ORE

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Contango ORE are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent technical and fundamental indicators, Contango ORE displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Contango ORE

The main advantage of trading using opposite SentinelOne and Contango ORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Contango ORE 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 Contango ORE will offset losses from the drop in Contango ORE's long position.

The idea behind SentinelOne and Contango ORE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stocks Directory module to find actively traded stocks across global markets.