Correlation Between PIVX and TNB

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

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

Diversification Opportunities for PIVX and TNB

-0.01

Correlation Coefficient

PIVX  TNB

Good diversification

The 3 months correlation between PIVX and TNB is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding PIVX and TNB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TNB and PIVX 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 PIVX are associated (or correlated) with TNB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TNB has no effect on the direction of PIVX i.e., PIVX and TNB go up and down completely randomly.

Pair Corralation between PIVX and TNB

Assuming the 90 days trading horizon PIVX is expected to generate 4.1 times more return on investment than TNB. However, PIVX is 4.1 times more volatile than TNB. It trades about 0.06 of its potential returns per unit of risk. TNB is currently generating about -0.06 per unit of risk. If you would invest  16.00  in PIVX on July 23, 2025 and sell it today you would earn a total of  2.00  from holding PIVX or generate 12.5% return on investment over 90 days.

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

PIVX  vs.  TNB

PIVX

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in PIVX are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, PIVX exhibited solid returns over the last few months and may actually be approaching a breakup point.

TNB

Risk-Adjusted Performance

Weakest

Over the last 90 days TNB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Crypto's fundamental drivers remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for TNB shareholders.

Pair Trading with PIVX and TNB

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

The idea behind PIVX and TNB 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.