Correlation Between Tenaris SA and Aiforia Technologies

Can any of the company-specific risk be diversified away by investing in both Tenaris SA and Aiforia Technologies 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 Aiforia Technologies 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 Aiforia Technologies Oyj, you can compare the effects of market volatilities on Tenaris SA and Aiforia Technologies 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 Aiforia Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenaris SA and Aiforia Technologies.

Diversification Opportunities for Tenaris SA and Aiforia Technologies

-0.68

Correlation Coefficient

Tenaris SA  Aiforia Technologies

Excellent diversification

The 3 months correlation between Tenaris and Aiforia is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Tenaris SA ADR and Aiforia Technologies Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aiforia Technologies Oyj 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 Aiforia Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aiforia Technologies Oyj has no effect on the direction of Tenaris SA i.e., Tenaris SA and Aiforia Technologies go up and down completely randomly.

Pair Corralation between Tenaris SA and Aiforia Technologies

Allowing for the 90-day total investment horizon Tenaris SA ADR is expected to generate 1.11 times more return on investment than Aiforia Technologies. However, Tenaris SA is 1.11 times more volatile than Aiforia Technologies Oyj. It trades about 0.07 of its potential returns per unit of risk. Aiforia Technologies Oyj is currently generating about -0.08 per unit of risk. If you would invest  3,234  in Tenaris SA ADR on May 6, 2025 and sell it today you would earn a total of  232.00  from holding Tenaris SA ADR or generate 7.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Tenaris SA ADR  vs.  Aiforia Technologies Oyj

Tenaris SA ADR

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Tenaris SA ADR are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, Tenaris SA may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Aiforia Technologies Oyj

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aiforia Technologies Oyj has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Tenaris SA and Aiforia Technologies

The main advantage of trading using opposite Tenaris SA and Aiforia Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenaris SA position performs unexpectedly, Aiforia Technologies 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 Aiforia Technologies will offset losses from the drop in Aiforia Technologies' long position.

The idea behind Tenaris SA ADR and Aiforia Technologies Oyj pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Positions Ratings module to 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.