Correlation Between GigaCloud Technology and Tenable Holdings
Can any of the company-specific risk be diversified away by investing in both GigaCloud Technology 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 GigaCloud Technology and Tenable Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GigaCloud Technology Class and Tenable Holdings, you can compare the effects of market volatilities on GigaCloud Technology 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 GigaCloud Technology with a short position of Tenable Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of GigaCloud Technology and Tenable Holdings.
Diversification Opportunities for GigaCloud Technology and Tenable Holdings
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GigaCloud and Tenable is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding GigaCloud Technology Class and Tenable Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tenable Holdings and GigaCloud Technology 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 GigaCloud Technology Class 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 GigaCloud Technology i.e., GigaCloud Technology and Tenable Holdings go up and down completely randomly.
Pair Corralation between GigaCloud Technology and Tenable Holdings
Considering the 90-day investment horizon GigaCloud Technology Class is expected to generate 1.78 times more return on investment than Tenable Holdings. However, GigaCloud Technology is 1.78 times more volatile than Tenable Holdings. It trades about 0.15 of its potential returns per unit of risk. Tenable Holdings is currently generating about 0.22 per unit of risk. If you would invest 1,906 in GigaCloud Technology Class on November 3, 2024 and sell it today you would earn a total of 226.00 from holding GigaCloud Technology Class or generate 11.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GigaCloud Technology Class vs. Tenable Holdings
Performance |
| Timeline |
| GigaCloud Technology |
| Tenable Holdings |
GigaCloud Technology and Tenable Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GigaCloud Technology and Tenable Holdings
The main advantage of trading using opposite GigaCloud Technology and Tenable Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GigaCloud Technology 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.| GigaCloud Technology vs. Arqit Quantum | GigaCloud Technology vs. Telos Corp | GigaCloud Technology vs. Cemtrex | GigaCloud Technology vs. Alarum Technologies |
| Tenable Holdings vs. Qualys Inc | Tenable Holdings vs. Varonis Systems | Tenable Holdings vs. SentinelOne | Tenable Holdings vs. Rapid7 Inc |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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