Correlation Between Tenaris SA and HF Sinclair
Can any of the company-specific risk be diversified away by investing in both Tenaris SA and HF Sinclair 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 HF Sinclair 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 HF Sinclair Corp, you can compare the effects of market volatilities on Tenaris SA and HF Sinclair 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 HF Sinclair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenaris SA and HF Sinclair.
Diversification Opportunities for Tenaris SA and HF Sinclair
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tenaris and DINO is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Tenaris SA ADR and HF Sinclair Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HF Sinclair Corp 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 HF Sinclair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HF Sinclair Corp has no effect on the direction of Tenaris SA i.e., Tenaris SA and HF Sinclair go up and down completely randomly.
Pair Corralation between Tenaris SA and HF Sinclair
Allowing for the 90-day total investment horizon Tenaris SA ADR is expected to generate 0.87 times more return on investment than HF Sinclair. However, Tenaris SA ADR is 1.15 times less risky than HF Sinclair. It trades about 0.04 of its potential returns per unit of risk. HF Sinclair Corp is currently generating about -0.03 per unit of risk. If you would invest 3,339 in Tenaris SA ADR on August 26, 2024 and sell it today you would earn a total of 403.00 from holding Tenaris SA ADR or generate 12.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tenaris SA ADR vs. HF Sinclair Corp
Performance |
| Timeline |
| Tenaris SA ADR |
| HF Sinclair Corp |
Tenaris SA and HF Sinclair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tenaris SA and HF Sinclair
The main advantage of trading using opposite Tenaris SA and HF Sinclair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenaris SA position performs unexpectedly, HF Sinclair 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 HF Sinclair will offset losses from the drop in HF Sinclair's long position.| Tenaris SA vs. ProPetro Holding Corp | Tenaris SA vs. RPC Inc | Tenaris SA vs. MRC Global | Tenaris SA vs. Expro Group Holdings |
| HF Sinclair vs. Delek Energy | HF Sinclair vs. CVR Energy | HF Sinclair vs. Valero Energy | HF Sinclair vs. Marathon Petroleum Corp |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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