Correlation Between SentinelOne and Mfs Commodity

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

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

Diversification Opportunities for SentinelOne and Mfs Commodity

-0.19

Correlation Coefficient

SentinelOne  Mfs Commodity

Good diversification

The 3 months correlation between SentinelOne and Mfs is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Mfs Commodity Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Commodity Strategy 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 Mfs Commodity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Commodity Strategy has no effect on the direction of SentinelOne i.e., SentinelOne and Mfs Commodity go up and down completely randomly.

Pair Corralation between SentinelOne and Mfs Commodity

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Mfs Commodity. In addition to that, SentinelOne is 4.16 times more volatile than Mfs Commodity Strategy. It trades about -0.07 of its total potential returns per unit of risk. Mfs Commodity Strategy is currently generating about 0.03 per unit of volatility. If you would invest  366.00  in Mfs Commodity Strategy on May 16, 2025 and sell it today you would earn a total of  4.00  from holding Mfs Commodity Strategy or generate 1.09% return on investment over 90 days.

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

SentinelOne  vs.  Mfs Commodity Strategy

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 weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Mfs Commodity Strategy

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Mfs Commodity Strategy are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical indicators, Mfs Commodity is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SentinelOne and Mfs Commodity

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

The idea behind SentinelOne and Mfs Commodity Strategy 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.