Correlation Between SentinelOne and Loop Industries

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

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

Diversification Opportunities for SentinelOne and Loop Industries

-0.44

Correlation Coefficient

SentinelOne  Loop Industries

Very good diversification

The 3 months correlation between SentinelOne and Loop is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Loop Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loop Industries 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 Loop Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loop Industries has no effect on the direction of SentinelOne i.e., SentinelOne and Loop Industries go up and down completely randomly.

Pair Corralation between SentinelOne and Loop Industries

Taking into account the 90-day investment horizon SentinelOne is expected to generate 3.21 times less return on investment than Loop Industries. But when comparing it to its historical volatility, SentinelOne is 2.64 times less risky than Loop Industries. It trades about 0.05 of its potential returns per unit of risk. Loop Industries is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  111.00  in Loop Industries on April 17, 2025 and sell it today you would earn a total of  12.00  from holding Loop Industries or generate 10.81% return on investment over 90 days.

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

SentinelOne  vs.  Loop Industries

SentinelOne

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SentinelOne are ranked lower than 3 (%) 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 August 2025.

Loop Industries

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Loop Industries are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting basic indicators, Loop Industries reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Loop Industries

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

The idea behind SentinelOne and Loop Industries 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.