Correlation Between Tenaris SA and Eidesvik Offshore
Can any of the company-specific risk be diversified away by investing in both Tenaris SA and Eidesvik Offshore 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 Eidesvik Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tenaris SA and Eidesvik Offshore ASA, you can compare the effects of market volatilities on Tenaris SA and Eidesvik Offshore 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 Eidesvik Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenaris SA and Eidesvik Offshore.
Diversification Opportunities for Tenaris SA and Eidesvik Offshore
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tenaris and Eidesvik is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Tenaris SA and Eidesvik Offshore ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eidesvik Offshore ASA 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 are associated (or correlated) with Eidesvik Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eidesvik Offshore ASA has no effect on the direction of Tenaris SA i.e., Tenaris SA and Eidesvik Offshore go up and down completely randomly.
Pair Corralation between Tenaris SA and Eidesvik Offshore
Assuming the 90 days horizon Tenaris SA is expected to generate 2.55 times less return on investment than Eidesvik Offshore. But when comparing it to its historical volatility, Tenaris SA is 1.58 times less risky than Eidesvik Offshore. It trades about 0.03 of its potential returns per unit of risk. Eidesvik Offshore ASA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 64.00 in Eidesvik Offshore ASA on September 12, 2024 and sell it today you would earn a total of 45.00 from holding Eidesvik Offshore ASA or generate 70.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tenaris SA vs. Eidesvik Offshore ASA
Performance |
| Timeline |
| Tenaris SA |
| Eidesvik Offshore ASA |
Tenaris SA and Eidesvik Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tenaris SA and Eidesvik Offshore
The main advantage of trading using opposite Tenaris SA and Eidesvik Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenaris SA position performs unexpectedly, Eidesvik Offshore 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 Eidesvik Offshore will offset losses from the drop in Eidesvik Offshore's long position.| Tenaris SA vs. Apollo Medical Holdings | Tenaris SA vs. Avanos Medical | Tenaris SA vs. PARKEN Sport Entertainment | Tenaris SA vs. SAFETY MEDICAL PROD |
| Eidesvik Offshore vs. Tenaris SA | Eidesvik Offshore vs. NOV Inc | Eidesvik Offshore vs. Superior Plus Corp | Eidesvik Offshore vs. SIVERS SEMICONDUCTORS AB |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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