Correlation Between Cenergy Holdings and Tubize Fin
Can any of the company-specific risk be diversified away by investing in both Cenergy Holdings and Tubize Fin 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 Cenergy Holdings and Tubize Fin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cenergy Holdings SA and Tubize Fin, you can compare the effects of market volatilities on Cenergy Holdings and Tubize Fin 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 Cenergy Holdings with a short position of Tubize Fin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cenergy Holdings and Tubize Fin.
Diversification Opportunities for Cenergy Holdings and Tubize Fin
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cenergy and Tubize is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Cenergy Holdings SA and Tubize Fin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tubize Fin and Cenergy Holdings 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 Cenergy Holdings SA are associated (or correlated) with Tubize Fin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tubize Fin has no effect on the direction of Cenergy Holdings i.e., Cenergy Holdings and Tubize Fin go up and down completely randomly.
Pair Corralation between Cenergy Holdings and Tubize Fin
Assuming the 90 days trading horizon Cenergy Holdings SA is expected to under-perform the Tubize Fin. In addition to that, Cenergy Holdings is 1.05 times more volatile than Tubize Fin. It trades about -0.01 of its total potential returns per unit of risk. Tubize Fin is currently generating about 0.07 per unit of volatility. If you would invest 15,000 in Tubize Fin on November 4, 2024 and sell it today you would earn a total of 280.00 from holding Tubize Fin or generate 1.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cenergy Holdings SA vs. Tubize Fin
Performance |
| Timeline |
| Cenergy Holdings |
| Tubize Fin |
Cenergy Holdings and Tubize Fin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cenergy Holdings and Tubize Fin
The main advantage of trading using opposite Cenergy Holdings and Tubize Fin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cenergy Holdings position performs unexpectedly, Tubize Fin 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 Tubize Fin will offset losses from the drop in Tubize Fin's long position.| Cenergy Holdings vs. Viohalco SA | Cenergy Holdings vs. Jensen Group | Cenergy Holdings vs. Floridienne | Cenergy Holdings vs. Compagnie du Bois |
| Tubize Fin vs. Groep Brussel Lambert | Tubize Fin vs. Ackermans Van Haaren | Tubize Fin vs. Tessenderlo | Tubize Fin vs. Sofina Socit Anonyme |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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