Correlation Between Tenaris SA and Citizens Bancorp
Can any of the company-specific risk be diversified away by investing in both Tenaris SA and Citizens Bancorp 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 Tenaris SA and Citizens Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tenaris SA ADR and Citizens Bancorp Investment, you can compare the effects of market volatilities on Tenaris SA and Citizens Bancorp 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 Tenaris SA with a short position of Citizens Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenaris SA and Citizens Bancorp.
Diversification Opportunities for Tenaris SA and Citizens Bancorp
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tenaris and Citizens is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Tenaris SA ADR and Citizens Bancorp Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens Bancorp Inv and Tenaris 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 Tenaris SA ADR are associated (or correlated) with Citizens Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens Bancorp Inv has no effect on the direction of Tenaris SA i.e., Tenaris SA and Citizens Bancorp go up and down completely randomly.
Pair Corralation between Tenaris SA and Citizens Bancorp
Allowing for the 90-day total investment horizon Tenaris SA is expected to generate 1.41 times less return on investment than Citizens Bancorp. But when comparing it to its historical volatility, Tenaris SA ADR is 1.87 times less risky than Citizens Bancorp. It trades about 0.32 of its potential returns per unit of risk. Citizens Bancorp Investment is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 2,555 in Citizens Bancorp Investment on October 20, 2024 and sell it today you would earn a total of 180.00 from holding Citizens Bancorp Investment or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Tenaris SA ADR vs. Citizens Bancorp Investment
Performance |
| Timeline |
| Tenaris SA ADR |
| Citizens Bancorp Inv |
Tenaris SA and Citizens Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tenaris SA and Citizens Bancorp
The main advantage of trading using opposite Tenaris SA and Citizens Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenaris SA position performs unexpectedly, Citizens Bancorp 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 Citizens Bancorp will offset losses from the drop in Citizens Bancorp's long position.| Tenaris SA vs. TechnipFMC PLC | Tenaris SA vs. Now Inc | Tenaris SA vs. ChampionX | Tenaris SA vs. Baker Hughes Co |
| Citizens Bancorp vs. Greenville Federal Financial | Citizens Bancorp vs. First Ottawa Bancshares | Citizens Bancorp vs. Coastal Carolina Bancshares | Citizens Bancorp vs. First Bankers Trustshares |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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