Correlation Between VivoPower International and Sentinel Small
Can any of the company-specific risk be diversified away by investing in both VivoPower International and Sentinel Small 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 VivoPower International and Sentinel Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VivoPower International PLC and Sentinel Small, you can compare the effects of market volatilities on VivoPower International and Sentinel Small 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 VivoPower International with a short position of Sentinel Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of VivoPower International and Sentinel Small.
Diversification Opportunities for VivoPower International and Sentinel Small
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between VivoPower and Sentinel is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding VivoPower International PLC and Sentinel Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentinel Small and VivoPower International 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 VivoPower International PLC are associated (or correlated) with Sentinel Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentinel Small has no effect on the direction of VivoPower International i.e., VivoPower International and Sentinel Small go up and down completely randomly.
Pair Corralation between VivoPower International and Sentinel Small
Given the investment horizon of 90 days VivoPower International PLC is expected to generate 11.77 times more return on investment than Sentinel Small. However, VivoPower International is 11.77 times more volatile than Sentinel Small. It trades about 0.06 of its potential returns per unit of risk. Sentinel Small is currently generating about 0.14 per unit of risk. If you would invest 604.00 in VivoPower International PLC on May 26, 2025 and sell it today you would earn a total of 1.00 from holding VivoPower International PLC or generate 0.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VivoPower International PLC vs. Sentinel Small
Performance |
| Timeline |
| VivoPower International |
| Sentinel Small |
VivoPower International and Sentinel Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VivoPower International and Sentinel Small
The main advantage of trading using opposite VivoPower International and Sentinel Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VivoPower International position performs unexpectedly, Sentinel Small 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 Sentinel Small will offset losses from the drop in Sentinel Small's long position.| VivoPower International vs. Ascent Solar Technologies, | VivoPower International vs. Emeren Group | VivoPower International vs. Polar Power | VivoPower International vs. Pioneer Power Solutions |
| Sentinel Small vs. Fidelity Small Cap | Sentinel Small vs. Omni Small Cap Value | Sentinel Small vs. Perkins Small Cap | Sentinel Small vs. Small Cap Value Fund |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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