Correlation Between CLP Holdings and Tenaga Nasional

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

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

Diversification Opportunities for CLP Holdings and Tenaga Nasional

-0.35

Correlation Coefficient

CLP Holdings  Tenaga Nasional

Very good diversification

The 3 months correlation between CLP and Tenaga is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding CLP Holdings and Tenaga Nasional Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tenaga Nasional Berhad and CLP 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 CLP Holdings are associated (or correlated) with Tenaga Nasional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tenaga Nasional Berhad has no effect on the direction of CLP Holdings i.e., CLP Holdings and Tenaga Nasional go up and down completely randomly.

Pair Corralation between CLP Holdings and Tenaga Nasional

Assuming the 90 days horizon CLP Holdings is expected to generate 0.18 times more return on investment than Tenaga Nasional. However, CLP Holdings is 5.44 times less risky than Tenaga Nasional. It trades about 0.11 of its potential returns per unit of risk. Tenaga Nasional Berhad is currently generating about -0.01 per unit of risk. If you would invest  790.00  in CLP Holdings on July 27, 2025 and sell it today you would earn a total of  52.00  from holding CLP Holdings or generate 6.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

CLP Holdings  vs.  Tenaga Nasional Berhad

CLP Holdings

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in CLP Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical indicators, CLP Holdings may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Tenaga Nasional Berhad

Risk-Adjusted Performance

Weakest

Over the last 90 days Tenaga Nasional Berhad has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental drivers, Tenaga Nasional is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CLP Holdings and Tenaga Nasional

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

The idea behind CLP Holdings and Tenaga Nasional Berhad 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.