Correlation Between Tenet Fintech and Argentum

Can any of the company-specific risk be diversified away by investing in both Tenet Fintech and Argentum 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 Tenet Fintech and Argentum into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Tenet Fintech Group and Argentum 47, you can compare the effects of market volatilities on Tenet Fintech and Argentum 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 Tenet Fintech with a short position of Argentum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenet Fintech and Argentum.

Diversification Opportunities for Tenet Fintech and Argentum

-0.14

Correlation Coefficient

Tenet Fintech  Argentum

Good diversification

The 3 months correlation between Tenet and Argentum is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Tenet Fintech Group and Argentum 47 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argentum 47 and Tenet Fintech 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 Tenet Fintech Group are associated (or correlated) with Argentum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argentum 47 has no effect on the direction of Tenet Fintech i.e., Tenet Fintech and Argentum go up and down completely randomly.

Pair Corralation between Tenet Fintech and Argentum

Assuming the 90 days horizon Tenet Fintech Group is expected to generate 2.11 times more return on investment than Argentum. However, Tenet Fintech is 2.11 times more volatile than Argentum 47. It trades about 0.17 of its potential returns per unit of risk. Argentum 47 is currently generating about 0.03 per unit of risk. If you would invest  1.87  in Tenet Fintech Group on May 6, 2025 and sell it today you would earn a total of  2.43  from holding Tenet Fintech Group or generate 129.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Tenet Fintech Group  vs.  Argentum 47

Tenet Fintech Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tenet Fintech Group are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Tenet Fintech reported solid returns over the last few months and may actually be approaching a breakup point.

Argentum 47

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Argentum 47 are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain technical and fundamental indicators, Argentum reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tenet Fintech and Argentum

The main advantage of trading using opposite Tenet Fintech and Argentum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenet Fintech position performs unexpectedly, Argentum 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 Argentum will offset losses from the drop in Argentum's long position.

The idea behind Tenet Fintech Group and Argentum 47 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.