Correlation Between Tenaris SA and GENERAL
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By analyzing existing cross correlation between Tenaris SA ADR and GENERAL MTRS FINL, you can compare the effects of market volatilities on Tenaris SA and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenaris SA and GENERAL.
Diversification Opportunities for Tenaris SA and GENERAL
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tenaris and GENERAL is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Tenaris SA ADR and GENERAL MTRS FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL MTRS FINL 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL MTRS FINL has no effect on the direction of Tenaris SA i.e., Tenaris SA and GENERAL go up and down completely randomly.
Pair Corralation between Tenaris SA and GENERAL
Allowing for the 90-day total investment horizon Tenaris SA ADR is expected to generate 8.71 times more return on investment than GENERAL. However, Tenaris SA is 8.71 times more volatile than GENERAL MTRS FINL. It trades about 0.23 of its potential returns per unit of risk. GENERAL MTRS FINL is currently generating about 0.07 per unit of risk. If you would invest 3,746 in Tenaris SA ADR on October 22, 2024 and sell it today you would earn a total of 121.00 from holding Tenaris SA ADR or generate 3.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tenaris SA ADR vs. GENERAL MTRS FINL
Performance |
| Timeline |
| Tenaris SA ADR |
| GENERAL MTRS FINL |
Tenaris SA and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tenaris SA and GENERAL
The main advantage of trading using opposite Tenaris SA and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenaris SA position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| Tenaris SA vs. TechnipFMC PLC | Tenaris SA vs. Now Inc | Tenaris SA vs. ChampionX | Tenaris SA vs. Baker Hughes Co |
| GENERAL vs. Catalyst Pharmaceuticals | GENERAL vs. Inhibrx | GENERAL vs. Apogee Therapeutics, Common | GENERAL vs. Skechers USA |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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