Correlation Between Tenaris SA and Schoeller Bleckmann
Can any of the company-specific risk be diversified away by investing in both Tenaris SA and Schoeller Bleckmann 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 Schoeller Bleckmann 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 Schoeller Bleckmann Oilfield, you can compare the effects of market volatilities on Tenaris SA and Schoeller Bleckmann 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 Schoeller Bleckmann. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenaris SA and Schoeller Bleckmann.
Diversification Opportunities for Tenaris SA and Schoeller Bleckmann
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tenaris and Schoeller is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Tenaris SA ADR and Schoeller Bleckmann Oilfield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schoeller Bleckmann 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 Schoeller Bleckmann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schoeller Bleckmann has no effect on the direction of Tenaris SA i.e., Tenaris SA and Schoeller Bleckmann go up and down completely randomly.
Pair Corralation between Tenaris SA and Schoeller Bleckmann
Allowing for the 90-day total investment horizon Tenaris SA ADR is expected to generate 0.67 times more return on investment than Schoeller Bleckmann. However, Tenaris SA ADR is 1.49 times less risky than Schoeller Bleckmann. It trades about 0.04 of its potential returns per unit of risk. Schoeller Bleckmann Oilfield is currently generating about -0.07 per unit of risk. If you would invest 3,390 in Tenaris SA ADR on August 27, 2024 and sell it today you would earn a total of 352.00 from holding Tenaris SA ADR or generate 10.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 87.77% |
| Values | Daily Returns |
Tenaris SA ADR vs. Schoeller Bleckmann Oilfield
Performance |
| Timeline |
| Tenaris SA ADR |
| Schoeller Bleckmann |
Tenaris SA and Schoeller Bleckmann Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tenaris SA and Schoeller Bleckmann
The main advantage of trading using opposite Tenaris SA and Schoeller Bleckmann positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenaris SA position performs unexpectedly, Schoeller Bleckmann 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 Schoeller Bleckmann will offset losses from the drop in Schoeller Bleckmann'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 |
| Schoeller Bleckmann vs. Apogee Therapeutics, Common | Schoeller Bleckmann vs. Sellas Life Sciences | Schoeller Bleckmann vs. Lion One Metals | Schoeller Bleckmann vs. Tarsus Pharmaceuticals |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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