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

0.08

Correlation Coefficient

Fleetcor Technologies  Tenable Holdings

Significant diversification

The 3 months correlation between Fleetcor and Tenable is 0.08. 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  3,950  in Tenable Holdings on September 12, 2024 and sell it today you would earn a total of  342.00  from holding Tenable Holdings or generate 8.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Fleetcor Technologies  vs.  Tenable Holdings

Fleetcor Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fleetcor Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, Fleetcor Technologies is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Tenable Holdings

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tenable Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Tenable Holdings may actually be approaching a critical reversion point that can send shares even higher in January 2025.

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.

The idea behind Fleetcor Technologies and Tenable Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.