Correlation Between Tenaris SA and Halliburton
Can any of the company-specific risk be diversified away by investing in both Tenaris SA and Halliburton 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 Halliburton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tenaris SA and Halliburton, you can compare the effects of market volatilities on Tenaris SA and Halliburton 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 Halliburton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenaris SA and Halliburton.
Diversification Opportunities for Tenaris SA and Halliburton
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tenaris and Halliburton is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Tenaris SA and Halliburton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton 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 Halliburton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halliburton has no effect on the direction of Tenaris SA i.e., Tenaris SA and Halliburton go up and down completely randomly.
Pair Corralation between Tenaris SA and Halliburton
Assuming the 90 days horizon Tenaris SA is expected to generate 0.96 times more return on investment than Halliburton. However, Tenaris SA is 1.05 times less risky than Halliburton. It trades about 0.43 of its potential returns per unit of risk. Halliburton is currently generating about 0.32 per unit of risk. If you would invest 2,915 in Tenaris SA on August 28, 2024 and sell it today you would earn a total of 665.00 from holding Tenaris SA or generate 22.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Tenaris SA vs. Halliburton
Performance |
| Timeline |
| Tenaris SA |
| Halliburton |
Tenaris SA and Halliburton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tenaris SA and Halliburton
The main advantage of trading using opposite Tenaris SA and Halliburton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenaris SA position performs unexpectedly, Halliburton 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 Halliburton will offset losses from the drop in Halliburton's long position.| Tenaris SA vs. Zijin Mining Group | Tenaris SA vs. Jacquet Metal Service | Tenaris SA vs. Harmony Gold Mining | Tenaris SA vs. GRIFFIN MINING LTD |
| Halliburton vs. SCANDMEDICAL SOLDK 040 | Halliburton vs. Apyx Medical Corp | Halliburton vs. COSTCO WHOLESALE CDR | Halliburton vs. Burlington Stores |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |