Correlation Between Tenaris SA and Getty Images
Can any of the company-specific risk be diversified away by investing in both Tenaris SA and Getty Images 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 Getty Images 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 Getty Images Holdings, you can compare the effects of market volatilities on Tenaris SA and Getty Images 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 Getty Images. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenaris SA and Getty Images.
Diversification Opportunities for Tenaris SA and Getty Images
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tenaris and Getty is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Tenaris SA ADR and Getty Images Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Images Holdings 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 Getty Images. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Images Holdings has no effect on the direction of Tenaris SA i.e., Tenaris SA and Getty Images go up and down completely randomly.
Pair Corralation between Tenaris SA and Getty Images
Allowing for the 90-day total investment horizon Tenaris SA ADR is expected to generate 0.37 times more return on investment than Getty Images. However, Tenaris SA ADR is 2.68 times less risky than Getty Images. It trades about 0.4 of its potential returns per unit of risk. Getty Images Holdings is currently generating about -0.22 per unit of risk. 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tenaris SA ADR vs. Getty Images Holdings
Performance |
| Timeline |
| Tenaris SA ADR |
| Getty Images Holdings |
Tenaris SA and Getty Images Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tenaris SA and Getty Images
The main advantage of trading using opposite Tenaris SA and Getty Images positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenaris SA position performs unexpectedly, Getty Images 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 Getty Images will offset losses from the drop in Getty Images' long position.| Tenaris SA vs. TechnipFMC PLC | Tenaris SA vs. Now Inc | Tenaris SA vs. ChampionX | Tenaris SA vs. Baker Hughes Co |
| Getty Images vs. Twilio Inc | Getty Images vs. Baidu Inc | Getty Images vs. Snap Inc | Getty Images vs. ANGI Homeservices |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |