Correlation Between SentinelOne and ScanSource

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

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

Diversification Opportunities for SentinelOne and ScanSource

0.67

Correlation Coefficient

SentinelOne  ScanSource

Poor diversification

The 3 months correlation between SentinelOne and ScanSource is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and ScanSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanSource 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 ScanSource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScanSource has no effect on the direction of SentinelOne i.e., SentinelOne and ScanSource go up and down completely randomly.

Pair Corralation between SentinelOne and ScanSource

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the ScanSource. In addition to that, SentinelOne is 1.67 times more volatile than ScanSource. It trades about -0.06 of its total potential returns per unit of risk. ScanSource is currently generating about 0.17 per unit of volatility. If you would invest  3,240  in ScanSource on September 22, 2025 and sell it today you would earn a total of  260.00  from holding ScanSource or generate 8.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.45%
Values	Daily Returns

SentinelOne  vs.  ScanSource

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 uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

ScanSource

Risk-Adjusted Performance

Weakest

Over the last 90 days ScanSource has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ScanSource is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with SentinelOne and ScanSource

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

The idea behind SentinelOne and ScanSource 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.