Correlation Between Tubize Fin and Cenergy Holdings
Can any of the company-specific risk be diversified away by investing in both Tubize Fin and Cenergy 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 Tubize Fin and Cenergy Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tubize Fin and Cenergy Holdings SA, you can compare the effects of market volatilities on Tubize Fin and Cenergy 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 Tubize Fin with a short position of Cenergy Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tubize Fin and Cenergy Holdings.
Diversification Opportunities for Tubize Fin and Cenergy Holdings
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tubize and Cenergy is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Tubize Fin and Cenergy Holdings SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cenergy Holdings and Tubize Fin 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 Tubize Fin are associated (or correlated) with Cenergy Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cenergy Holdings has no effect on the direction of Tubize Fin i.e., Tubize Fin and Cenergy Holdings go up and down completely randomly.
Pair Corralation between Tubize Fin and Cenergy Holdings
Assuming the 90 days trading horizon Tubize Fin is expected to generate 0.61 times more return on investment than Cenergy Holdings. However, Tubize Fin is 1.64 times less risky than Cenergy Holdings. It trades about 0.12 of its potential returns per unit of risk. Cenergy Holdings SA is currently generating about 0.04 per unit of risk. If you would invest 7,100 in Tubize Fin on August 26, 2024 and sell it today you would earn a total of 6,500 from holding Tubize Fin or generate 91.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tubize Fin vs. Cenergy Holdings SA
Performance |
| Timeline |
| Tubize Fin |
| Cenergy Holdings |
Tubize Fin and Cenergy Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tubize Fin and Cenergy Holdings
The main advantage of trading using opposite Tubize Fin and Cenergy Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tubize Fin position performs unexpectedly, Cenergy 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 Cenergy Holdings will offset losses from the drop in Cenergy Holdings' long position.| Tubize Fin vs. EVS Broadcast Equipment | Tubize Fin vs. NV Bekaert SA | Tubize Fin vs. Melexis NV | Tubize Fin vs. Barco NV |
| Cenergy Holdings vs. Ackermans Van Haaren | Cenergy Holdings vs. NV Bekaert SA | Cenergy Holdings vs. Groep Brussel Lambert | Cenergy Holdings vs. Tubize Fin |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |