Correlation Between SentinelOne and IsoEnergy

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

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

Diversification Opportunities for SentinelOne and IsoEnergy

0.05

Correlation Coefficient

SentinelOne  IsoEnergy

Significant diversification

The 3 months correlation between SentinelOne and IsoEnergy is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and IsoEnergy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IsoEnergy 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 IsoEnergy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IsoEnergy has no effect on the direction of SentinelOne i.e., SentinelOne and IsoEnergy go up and down completely randomly.

Pair Corralation between SentinelOne and IsoEnergy

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the IsoEnergy. But the stock apears to be less risky and, when comparing its historical volatility, SentinelOne is 1.48 times less risky than IsoEnergy. The stock trades about -0.04 of its potential returns per unit of risk. The IsoEnergy is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  760.00  in IsoEnergy on July 24, 2025 and sell it today you would earn a total of  106.00  from holding IsoEnergy or generate 13.95% return on investment over 90 days.

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

SentinelOne  vs.  IsoEnergy

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 conflicting 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.

IsoEnergy

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in IsoEnergy are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, IsoEnergy unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and IsoEnergy

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

The idea behind SentinelOne and IsoEnergy 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.

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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.