Correlation Between Pagaya Technologies and Tenable Holdings

Can any of the company-specific risk be diversified away by investing in both Pagaya 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 Pagaya 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 Pagaya Technologies and Tenable Holdings, you can compare the effects of market volatilities on Pagaya 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 Pagaya Technologies with a short position of Tenable Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pagaya Technologies and Tenable Holdings.

Diversification Opportunities for Pagaya Technologies and Tenable Holdings

0.26

Correlation Coefficient

Pagaya Technologies  Tenable Holdings

Modest diversification

The 3 months correlation between Pagaya and Tenable is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Pagaya Technologies and Tenable Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tenable Holdings and Pagaya 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 Pagaya 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 Pagaya Technologies i.e., Pagaya Technologies and Tenable Holdings go up and down completely randomly.

Pair Corralation between Pagaya Technologies and Tenable Holdings

Considering the 90-day investment horizon Pagaya Technologies is expected to generate 3.14 times more return on investment than Tenable Holdings. However, Pagaya Technologies is 3.14 times more volatile than Tenable Holdings. It trades about 0.3 of its potential returns per unit of risk. Tenable Holdings is currently generating about -0.01 per unit of risk. If you would invest  1,149  in Pagaya Technologies on May 6, 2025 and sell it today you would earn a total of  1,763  from holding Pagaya Technologies or generate 153.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Pagaya Technologies  vs.  Tenable Holdings

Pagaya Technologies

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pagaya Technologies are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating technical and fundamental indicators, Pagaya Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

Tenable Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tenable Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Tenable Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Pagaya Technologies and Tenable Holdings

The main advantage of trading using opposite Pagaya Technologies and Tenable Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pagaya 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 Pagaya 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.