Correlation Between Tenaris SA and Here Media
Can any of the company-specific risk be diversified away by investing in both Tenaris SA and Here Media 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 Here Media 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 Here Media, you can compare the effects of market volatilities on Tenaris SA and Here Media 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 Here Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenaris SA and Here Media.
Diversification Opportunities for Tenaris SA and Here Media
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tenaris and Here is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tenaris SA ADR and Here Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Here Media 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 Here Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Here Media has no effect on the direction of Tenaris SA i.e., Tenaris SA and Here Media go up and down completely randomly.
Pair Corralation between Tenaris SA and Here Media
Allowing for the 90-day total investment horizon Tenaris SA is expected to generate 4.11 times less return on investment than Here Media. But when comparing it to its historical volatility, Tenaris SA ADR is 2.46 times less risky than Here Media. It trades about 0.03 of its potential returns per unit of risk. Here Media is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Here Media on October 11, 2024 and sell it today you would earn a total of 0.01 from holding Here Media or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Tenaris SA ADR vs. Here Media
Performance |
| Timeline |
| Tenaris SA ADR |
| Here Media |
Tenaris SA and Here Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tenaris SA and Here Media
The main advantage of trading using opposite Tenaris SA and Here Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenaris SA position performs unexpectedly, Here Media 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 Here Media will offset losses from the drop in Here Media's long position.| Tenaris SA vs. TechnipFMC PLC | Tenaris SA vs. Now Inc | Tenaris SA vs. ChampionX | Tenaris SA vs. Baker Hughes Co |
| Here Media vs. Cracker Barrel Old | Here Media vs. Shake Shack | Here Media vs. Tenaris SA ADR | Here Media vs. Drilling Tools International |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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