Correlation Between SentinelOne and McKesson
Can any of the company-specific risk be diversified away by investing in both SentinelOne and McKesson 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 McKesson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and McKesson, you can compare the effects of market volatilities on SentinelOne and McKesson 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 McKesson. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and McKesson.
Diversification Opportunities for SentinelOne and McKesson
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between SentinelOne and McKesson is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and McKesson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McKesson 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 McKesson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of McKesson has no effect on the direction of SentinelOne i.e., SentinelOne and McKesson go up and down completely randomly.
Pair Corralation between SentinelOne and McKesson
Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the McKesson. In addition to that, SentinelOne is 1.54 times more volatile than McKesson. It trades about -0.09 of its total potential returns per unit of risk. McKesson is currently generating about 0.1 per unit of volatility. If you would invest 71,037 in McKesson on July 20, 2025 and sell it today you would earn a total of 7,563 from holding McKesson or generate 10.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. McKesson
Performance |
| Timeline |
| SentinelOne |
| McKesson |
SentinelOne and McKesson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and McKesson
The main advantage of trading using opposite SentinelOne and McKesson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, McKesson 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 McKesson will offset losses from the drop in McKesson's long position.| SentinelOne vs. Core Scientific, Common | SentinelOne vs. ACI Worldwide | SentinelOne vs. Wex Inc | SentinelOne vs. Cellebrite DI |
| McKesson vs. CVS Health Corp | McKesson vs. Cencora | McKesson vs. HCA Holdings | McKesson vs. Vertex Pharmaceuticals |
Check out your portfolio center.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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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