Correlation Between SentinelOne and Molson Coors

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

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

Diversification Opportunities for SentinelOne and Molson Coors

-0.75

Correlation Coefficient

SentinelOne  Molson Coors

Pay attention - limited upside

The 3 months correlation between SentinelOne and Molson is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Molson Coors Beverage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molson Coors Beverage 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 Molson Coors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Molson Coors Beverage has no effect on the direction of SentinelOne i.e., SentinelOne and Molson Coors go up and down completely randomly.

Pair Corralation between SentinelOne and Molson Coors

Taking into account the 90-day investment horizon SentinelOne is expected to generate 38.37 times more return on investment than Molson Coors. However, SentinelOne is 38.37 times more volatile than Molson Coors Beverage. It trades about 0.01 of its potential returns per unit of risk. Molson Coors Beverage is currently generating about 0.13 per unit of risk. If you would invest  2,322  in SentinelOne on October 7, 2024 and sell it today you would lose (41.00) from holding SentinelOne or give up 1.77% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.24%
Values	Daily Returns

SentinelOne  vs.  Molson Coors Beverage

SentinelOne

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SentinelOne has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, SentinelOne is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Molson Coors Beverage

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Molson Coors Beverage are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental indicators, Molson Coors 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 Molson Coors

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

The idea behind SentinelOne and Molson Coors Beverage 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.