Correlation Between Tenaris SA and Elamex SA

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

Diversification Opportunities for Tenaris SA and Elamex SA

0.0

Correlation Coefficient

Tenaris SA  Elamex SA

Pay attention - limited upside

The 3 months correlation between Tenaris and Elamex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tenaris SA ADR and Elamex SA de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elamex SA de 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 Elamex SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elamex SA de has no effect on the direction of Tenaris SA i.e., Tenaris SA and Elamex SA go up and down completely randomly.

Pair Corralation between Tenaris SA and Elamex SA

If you would invest  215.00  in Elamex SA de on March 6, 2025 and sell it today you would earn a total of  0.00  from holding Elamex SA de or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Tenaris SA ADR  vs.  Elamex SA de

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 comparatively stable basic indicators, Tenaris SA is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Elamex SA de

Risk-Adjusted Performance

Very Weak

Over the last 90 days Elamex SA de has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Elamex SA is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Tenaris SA and Elamex SA

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

The idea behind Tenaris SA ADR and Elamex SA de 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.