Correlation Between FDG Electric and Tenaris SA
Can any of the company-specific risk be diversified away by investing in both FDG Electric and Tenaris SA 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 FDG Electric and Tenaris SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FDG Electric Vehicles and Tenaris SA ADR, you can compare the effects of market volatilities on FDG Electric and Tenaris SA 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 FDG Electric with a short position of Tenaris SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of FDG Electric and Tenaris SA.
Diversification Opportunities for FDG Electric and Tenaris SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FDG and Tenaris is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FDG Electric Vehicles and Tenaris SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tenaris SA ADR and FDG Electric 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 FDG Electric Vehicles are associated (or correlated) with Tenaris SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tenaris SA ADR has no effect on the direction of FDG Electric i.e., FDG Electric and Tenaris SA go up and down completely randomly.
Pair Corralation between FDG Electric and Tenaris SA
If you would invest 3,039 in Tenaris SA ADR on August 29, 2024 and sell it today you would earn a total of 770.00 from holding Tenaris SA ADR or generate 25.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FDG Electric Vehicles vs. Tenaris SA ADR
Performance |
| Timeline |
| FDG Electric Vehicles |
| Tenaris SA ADR |
FDG Electric and Tenaris SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FDG Electric and Tenaris SA
The main advantage of trading using opposite FDG Electric and Tenaris SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FDG Electric position performs unexpectedly, Tenaris SA 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 Tenaris SA will offset losses from the drop in Tenaris SA's long position.| FDG Electric vs. BCB Bancorp | FDG Electric vs. Discover Financial Services | FDG Electric vs. Kaltura | FDG Electric vs. NETGEAR |
| Tenaris SA vs. TechnipFMC PLC | Tenaris SA vs. Now Inc | Tenaris SA vs. ChampionX | Tenaris SA vs. Baker Hughes Co |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |