Correlation Between Tenable Holdings and Gen Digital
Can any of the company-specific risk be diversified away by investing in both Tenable Holdings and Gen Digital 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 Tenable Holdings and Gen Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tenable Holdings and Gen Digital, you can compare the effects of market volatilities on Tenable Holdings and Gen Digital 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 Tenable Holdings with a short position of Gen Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenable Holdings and Gen Digital.
Diversification Opportunities for Tenable Holdings and Gen Digital
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tenable and Gen is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Tenable Holdings and Gen Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gen Digital and Tenable 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 Tenable Holdings are associated (or correlated) with Gen Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gen Digital has no effect on the direction of Tenable Holdings i.e., Tenable Holdings and Gen Digital go up and down completely randomly.
Pair Corralation between Tenable Holdings and Gen Digital
Given the investment horizon of 90 days Tenable Holdings is expected to generate 3.86 times less return on investment than Gen Digital. In addition to that, Tenable Holdings is 1.45 times more volatile than Gen Digital. It trades about 0.02 of its total potential returns per unit of risk. Gen Digital is currently generating about 0.12 per unit of volatility. If you would invest 2,400 in Gen Digital on September 19, 2024 and sell it today you would earn a total of 538.00 from holding Gen Digital or generate 22.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tenable Holdings vs. Gen Digital
Performance |
| Timeline |
| Tenable Holdings |
| Gen Digital |
Tenable Holdings and Gen Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tenable Holdings and Gen Digital
The main advantage of trading using opposite Tenable Holdings and Gen Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenable Holdings position performs unexpectedly, Gen Digital 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 Gen Digital will offset losses from the drop in Gen Digital's long position.| Tenable Holdings vs. Qualys Inc | Tenable Holdings vs. Varonis Systems | Tenable Holdings vs. SentinelOne | Tenable Holdings vs. Rapid7 Inc |
| Gen Digital vs. Evertec | Gen Digital vs. NetScout Systems | Gen Digital vs. CSG Systems International | Gen Digital vs. Tenable Holdings |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |