Correlation Between Tenaris SA and AngioDynamics

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

Diversification Opportunities for Tenaris SA and AngioDynamics

0.52

Correlation Coefficient

Tenaris SA  AngioDynamics

Very weak diversification

The 3 months correlation between Tenaris and AngioDynamics is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Tenaris SA ADR and AngioDynamics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AngioDynamics 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 AngioDynamics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AngioDynamics has no effect on the direction of Tenaris SA i.e., Tenaris SA and AngioDynamics go up and down completely randomly.

Pair Corralation between Tenaris SA and AngioDynamics

Allowing for the 90-day total investment horizon Tenaris SA ADR is expected to generate 0.72 times more return on investment than AngioDynamics. However, Tenaris SA ADR is 1.38 times less risky than AngioDynamics. It trades about -0.06 of its potential returns per unit of risk. AngioDynamics is currently generating about -0.06 per unit of risk. If you would invest  3,779  in Tenaris SA ADR on February 3, 2025 and sell it today you would lose (424.00) from holding Tenaris SA ADR or give up 11.22% of portfolio value over 90 days.

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

Tenaris SA ADR  vs.  AngioDynamics

Tenaris SA ADR

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tenaris SA ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

AngioDynamics

Risk-Adjusted Performance

Very Weak

Over the last 90 days AngioDynamics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in June 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Tenaris SA and AngioDynamics

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

The idea behind Tenaris SA ADR and AngioDynamics 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..