Correlation Between Tenaris SA and 10921U2H0
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By analyzing existing cross correlation between Tenaris SA ADR and BHF 175 13 JAN 25, you can compare the effects of market volatilities on Tenaris SA and 10921U2H0 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 10921U2H0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenaris SA and 10921U2H0.
Diversification Opportunities for Tenaris SA and 10921U2H0
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tenaris and 10921U2H0 is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Tenaris SA ADR and BHF 175 13 JAN 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BHF 175 13 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 10921U2H0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BHF 175 13 has no effect on the direction of Tenaris SA i.e., Tenaris SA and 10921U2H0 go up and down completely randomly.
Pair Corralation between Tenaris SA and 10921U2H0
Allowing for the 90-day total investment horizon Tenaris SA ADR is expected to generate 2.54 times more return on investment than 10921U2H0. However, Tenaris SA is 2.54 times more volatile than BHF 175 13 JAN 25. It trades about 0.07 of its potential returns per unit of risk. BHF 175 13 JAN 25 is currently generating about -0.03 per unit of risk. If you would invest 2,628 in Tenaris SA ADR on September 1, 2024 and sell it today you would earn a total of 1,205 from holding Tenaris SA ADR or generate 45.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 29.57% |
| Values | Daily Returns |
Tenaris SA ADR vs. BHF 175 13 JAN 25
Performance |
| Timeline |
| Tenaris SA ADR |
| BHF 175 13 |
Tenaris SA and 10921U2H0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tenaris SA and 10921U2H0
The main advantage of trading using opposite Tenaris SA and 10921U2H0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenaris SA position performs unexpectedly, 10921U2H0 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 10921U2H0 will offset losses from the drop in 10921U2H0's long position.| Tenaris SA vs. TechnipFMC PLC | Tenaris SA vs. Now Inc | Tenaris SA vs. ChampionX | Tenaris SA vs. Baker Hughes Co |
| 10921U2H0 vs. ATT Inc | 10921U2H0 vs. Home Depot | 10921U2H0 vs. Cisco Systems | 10921U2H0 vs. Dupont De Nemours |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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