Correlation Between SentinelOne and E3 Metals

Can any of the company-specific risk be diversified away by investing in both SentinelOne and E3 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 E3 Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SentinelOne and E3 Metals Corp, you can compare the effects of market volatilities on SentinelOne and E3 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 E3 Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and E3 Metals.

Diversification Opportunities for SentinelOne and E3 Metals

-0.2

Correlation Coefficient

SentinelOne  E3 Metals

Good diversification

The 3 months correlation between SentinelOne and EEMMF is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and E3 Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E3 Metals Corp 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 E3 Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E3 Metals Corp has no effect on the direction of SentinelOne i.e., SentinelOne and E3 Metals go up and down completely randomly.

Pair Corralation between SentinelOne and E3 Metals

Taking into account the 90-day investment horizon SentinelOne is expected to generate 5.34 times less return on investment than E3 Metals. But when comparing it to its historical volatility, SentinelOne is 1.83 times less risky than E3 Metals. It trades about 0.04 of its potential returns per unit of risk. E3 Metals Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  78.00  in E3 Metals Corp on July 11, 2025 and sell it today you would earn a total of  24.00  from holding E3 Metals Corp or generate 30.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

SentinelOne  vs.  E3 Metals Corp

SentinelOne

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SentinelOne are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, SentinelOne may actually be approaching a critical reversion point that can send shares even higher in November 2025.

E3 Metals Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in E3 Metals Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, E3 Metals reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and E3 Metals

The main advantage of trading using opposite SentinelOne and E3 Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, E3 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 E3 Metals will offset losses from the drop in E3 Metals' long position.

The idea behind SentinelOne and E3 Metals Corp 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.