Correlation Between Tenaris SA and Blackrock Mid

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

Diversification Opportunities for Tenaris SA and Blackrock Mid

0.73

Correlation Coefficient

Tenaris SA  Blackrock Mid

Poor diversification

The 3 months correlation between Tenaris and Blackrock is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Tenaris SA ADR and Blackrock Mid Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Mid Cap 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 Blackrock Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Mid Cap has no effect on the direction of Tenaris SA i.e., Tenaris SA and Blackrock Mid go up and down completely randomly.

Pair Corralation between Tenaris SA and Blackrock Mid

Allowing for the 90-day total investment horizon Tenaris SA ADR is expected to generate 1.61 times more return on investment than Blackrock Mid. However, Tenaris SA is 1.61 times more volatile than Blackrock Mid Cap Growth. It trades about 0.09 of its potential returns per unit of risk. Blackrock Mid Cap Growth is currently generating about 0.12 per unit of risk. If you would invest  3,189  in Tenaris SA ADR on May 7, 2025 and sell it today you would earn a total of  278.00  from holding Tenaris SA ADR or generate 8.72% return on investment over 90 days.

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

Tenaris SA ADR  vs.  Blackrock Mid Cap Growth

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 6 (%) 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.

Blackrock Mid Cap

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Blackrock Mid Cap Growth are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward-looking signals, Blackrock Mid may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Tenaris SA and Blackrock Mid

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

The idea behind Tenaris SA ADR and Blackrock Mid Cap Growth 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .