Correlation Between SentinelOne and Nexa Resources

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

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

Diversification Opportunities for SentinelOne and Nexa Resources

-0.14

Correlation Coefficient

SentinelOne  Nexa Resources

Good diversification

The 3 months correlation between SentinelOne and Nexa is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Nexa Resources Peru in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexa Resources Peru 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 Nexa Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexa Resources Peru has no effect on the direction of SentinelOne i.e., SentinelOne and Nexa Resources go up and down completely randomly.

Pair Corralation between SentinelOne and Nexa Resources

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Nexa Resources. In addition to that, SentinelOne is 3.89 times more volatile than Nexa Resources Peru. It trades about -0.08 of its total potential returns per unit of risk. Nexa Resources Peru is currently generating about -0.01 per unit of volatility. If you would invest  130.00  in Nexa Resources Peru on May 19, 2025 and sell it today you would lose (1.00) from holding Nexa Resources Peru or give up 0.77% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	93.65%
Values	Daily Returns

SentinelOne  vs.  Nexa Resources Peru

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.

Nexa Resources Peru

Risk-Adjusted Performance

Weakest

Over the last 90 days Nexa Resources Peru has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Nexa Resources is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with SentinelOne and Nexa Resources

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

The idea behind SentinelOne and Nexa Resources Peru 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.