Correlation Between Tenaris SA and Dalata Hotel
Can any of the company-specific risk be diversified away by investing in both Tenaris SA and Dalata Hotel 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 Dalata Hotel 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 Dalata Hotel Group, you can compare the effects of market volatilities on Tenaris SA and Dalata Hotel 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 Dalata Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenaris SA and Dalata Hotel.
Diversification Opportunities for Tenaris SA and Dalata Hotel
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tenaris and Dalata is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Tenaris SA ADR and Dalata Hotel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalata Hotel Group 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 Dalata Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalata Hotel Group has no effect on the direction of Tenaris SA i.e., Tenaris SA and Dalata Hotel go up and down completely randomly.
Pair Corralation between Tenaris SA and Dalata Hotel
If you would invest 3,255 in Tenaris SA ADR on September 4, 2024 and sell it today you would earn a total of 593.00 from holding Tenaris SA ADR or generate 18.22% 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. Dalata Hotel Group
Performance |
| Timeline |
| Tenaris SA ADR |
| Dalata Hotel Group |
Tenaris SA and Dalata Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tenaris SA and Dalata Hotel
The main advantage of trading using opposite Tenaris SA and Dalata Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenaris SA position performs unexpectedly, Dalata Hotel 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 Dalata Hotel will offset losses from the drop in Dalata Hotel's long position.| Tenaris SA vs. TechnipFMC PLC | Tenaris SA vs. Now Inc | Tenaris SA vs. ChampionX | Tenaris SA vs. Baker Hughes Co |
| Dalata Hotel vs. Apple Inc | Dalata Hotel vs. Microsoft | Dalata Hotel vs. Amazon Inc | Dalata Hotel vs. Alphabet Inc Class C |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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