Correlation Between Tupy SA and Kendrion

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

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

Diversification Opportunities for Tupy SA and Kendrion

-0.59

Correlation Coefficient

Tupy SA  Kendrion

Excellent diversification

The 3 months correlation between Tupy and Kendrion is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Tupy SA and Kendrion NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kendrion NV and Tupy SA 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 Tupy SA are associated (or correlated) with Kendrion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kendrion NV has no effect on the direction of Tupy SA i.e., Tupy SA and Kendrion go up and down completely randomly.

Pair Corralation between Tupy SA and Kendrion

Assuming the 90 days trading horizon Tupy SA is expected to under-perform the Kendrion. In addition to that, Tupy SA is 1.39 times more volatile than Kendrion NV. It trades about -0.24 of its total potential returns per unit of risk. Kendrion NV is currently generating about 0.15 per unit of volatility. If you would invest  983.00  in Kendrion NV on April 23, 2025 and sell it today you would earn a total of  135.00  from holding Kendrion NV or generate 13.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Tupy SA  vs.  Kendrion NV

Tupy SA

Risk-Adjusted Performance

Very Weak

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

Kendrion NV

Risk-Adjusted Performance

Good

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

Pair Trading with Tupy SA and Kendrion

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

The idea behind Tupy SA and Kendrion NV 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.