Correlation Between Tenaris SA and Par Pacific
Can any of the company-specific risk be diversified away by investing in both Tenaris SA and Par Pacific 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 Par Pacific 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 Par Pacific Holdings, you can compare the effects of market volatilities on Tenaris SA and Par Pacific 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 Par Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenaris SA and Par Pacific.
Diversification Opportunities for Tenaris SA and Par Pacific
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tenaris and Par is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Tenaris SA ADR and Par Pacific Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Par Pacific 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 Par Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Par Pacific Holdings has no effect on the direction of Tenaris SA i.e., Tenaris SA and Par Pacific go up and down completely randomly.
Pair Corralation between Tenaris SA and Par Pacific
Allowing for the 90-day total investment horizon Tenaris SA ADR is expected to generate 0.76 times more return on investment than Par Pacific. However, Tenaris SA ADR is 1.32 times less risky than Par Pacific. It trades about 0.03 of its potential returns per unit of risk. Par Pacific Holdings is currently generating about 0.0 per unit of risk. If you would invest 3,017 in Tenaris SA ADR on August 24, 2024 and sell it today you would earn a total of 683.00 from holding Tenaris SA ADR or generate 22.64% 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. Par Pacific Holdings
Performance |
| Timeline |
| Tenaris SA ADR |
| Par Pacific Holdings |
Tenaris SA and Par Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tenaris SA and Par Pacific
The main advantage of trading using opposite Tenaris SA and Par Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenaris SA position performs unexpectedly, Par Pacific 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 Par Pacific will offset losses from the drop in Par Pacific's long position.| Tenaris SA vs. TechnipFMC PLC | Tenaris SA vs. Now Inc | Tenaris SA vs. ChampionX | Tenaris SA vs. Baker Hughes Co |
| Par Pacific vs. Delek Logistics Partners | Par Pacific vs. CVR Energy | Par Pacific vs. PBF Energy | Par Pacific vs. HF Sinclair 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |