Correlation Between Supercom and Tenax Therapeutics

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

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

Diversification Opportunities for Supercom and Tenax Therapeutics

0.23

Correlation Coefficient

Supercom  Tenax Therapeutics

Modest diversification

The 3 months correlation between Supercom and Tenax is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Supercom and Tenax Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tenax Therapeutics and Supercom 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 Supercom are associated (or correlated) with Tenax Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tenax Therapeutics has no effect on the direction of Supercom i.e., Supercom and Tenax Therapeutics go up and down completely randomly.

Pair Corralation between Supercom and Tenax Therapeutics

Given the investment horizon of 90 days Supercom is expected to generate 2.18 times more return on investment than Tenax Therapeutics. However, Supercom is 2.18 times more volatile than Tenax Therapeutics. It trades about 0.16 of its potential returns per unit of risk. Tenax Therapeutics is currently generating about 0.06 per unit of risk. If you would invest  602.00  in Supercom on April 29, 2025 and sell it today you would earn a total of  339.00  from holding Supercom or generate 56.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Supercom  vs.  Tenax Therapeutics

Supercom

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Supercom are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent fundamental indicators, Supercom sustained solid returns over the last few months and may actually be approaching a breakup point.

Tenax Therapeutics

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Tenax Therapeutics are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Tenax Therapeutics may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Supercom and Tenax Therapeutics

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

The idea behind Supercom and Tenax Therapeutics 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.

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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..