Correlation Between Tenaris SA and Blade Air

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

Diversification Opportunities for Tenaris SA and Blade Air

0.68

Correlation Coefficient

Tenaris SA  Blade Air

Poor diversification

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

Pair Corralation between Tenaris SA and Blade Air

Allowing for the 90-day total investment horizon Tenaris SA ADR is expected to generate 0.3 times more return on investment than Blade Air. However, Tenaris SA ADR is 3.38 times less risky than Blade Air. It trades about -0.06 of its potential returns per unit of risk. Blade Air Mobility is currently generating about -0.08 per unit of risk. If you would invest  3,779  in Tenaris SA ADR on February 2, 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	Significant
Accuracy	100.0%
Values	Daily Returns

Tenaris SA ADR  vs.  Blade Air Mobility

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.

Blade Air Mobility

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blade Air Mobility has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain fairly stable which may send shares a bit higher in June 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Tenaris SA and Blade Air

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

The idea behind Tenaris SA ADR and Blade Air Mobility 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.