Correlation Between Tenable Holdings and Certara

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

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

Diversification Opportunities for Tenable Holdings and Certara

-0.25

Correlation Coefficient

Tenable Holdings  Certara

Very good diversification

The 3 months correlation between Tenable and Certara is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Tenable Holdings and Certara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Certara and Tenable Holdings 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 Tenable Holdings are associated (or correlated) with Certara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Certara has no effect on the direction of Tenable Holdings i.e., Tenable Holdings and Certara go up and down completely randomly.

Pair Corralation between Tenable Holdings and Certara

Given the investment horizon of 90 days Tenable Holdings is expected to generate 0.58 times more return on investment than Certara. However, Tenable Holdings is 1.72 times less risky than Certara. It trades about -0.01 of its potential returns per unit of risk. Certara is currently generating about -0.14 per unit of risk. If you would invest  3,126  in Tenable Holdings on May 3, 2025 and sell it today you would lose (69.00) from holding Tenable Holdings or give up 2.21% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Tenable Holdings  vs.  Certara

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 latest stock price disturbance, may contribute to short-term losses for the investors.

Certara

Risk-Adjusted Performance

Very Weak

Over the last 90 days Certara has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Tenable Holdings and Certara

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

The idea behind Tenable Holdings and Certara 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..