Correlation Between Fleetcor Technologies and Tenable Holdings
Can any of the company-specific risk be diversified away by investing in both Fleetcor Technologies and Tenable Holdings 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 Fleetcor Technologies and Tenable Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fleetcor Technologies and Tenable Holdings, you can compare the effects of market volatilities on Fleetcor Technologies and Tenable Holdings 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 Fleetcor Technologies with a short position of Tenable Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fleetcor Technologies and Tenable Holdings.
Diversification Opportunities for Fleetcor Technologies and Tenable Holdings
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fleetcor and Tenable is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Fleetcor Technologies and Tenable Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tenable Holdings and Fleetcor Technologies 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 Fleetcor Technologies are associated (or correlated) with Tenable Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tenable Holdings has no effect on the direction of Fleetcor Technologies i.e., Fleetcor Technologies and Tenable Holdings go up and down completely randomly.
Pair Corralation between Fleetcor Technologies and Tenable Holdings
If you would invest 3,970 in Tenable Holdings on August 26, 2024 and sell it today you would earn a total of 274.00 from holding Tenable Holdings or generate 6.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 2.27% |
| Values | Daily Returns |
Fleetcor Technologies vs. Tenable Holdings
Performance |
| Timeline |
| Fleetcor Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Tenable Holdings |
Fleetcor Technologies and Tenable Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fleetcor Technologies and Tenable Holdings
The main advantage of trading using opposite Fleetcor Technologies and Tenable Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fleetcor Technologies position performs unexpectedly, Tenable Holdings 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 Tenable Holdings will offset losses from the drop in Tenable Holdings' long position.| Fleetcor Technologies vs. Emerson Electric | Fleetcor Technologies vs. Marfrig Global Foods | Fleetcor Technologies vs. Topbuild Corp | Fleetcor Technologies vs. FitLife Brands, Common |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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