Correlation Between Eni SPA and TC Energy
Can any of the company-specific risk be diversified away by investing in both Eni SPA and TC Energy 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 Eni SPA and TC Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eni SpA ADR and TC Energy Corp, you can compare the effects of market volatilities on Eni SPA and TC Energy 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 Eni SPA with a short position of TC Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eni SPA and TC Energy.
Diversification Opportunities for Eni SPA and TC Energy
Very weak diversification
The 3 months correlation between Eni and TRP is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Eni SpA ADR and TC Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TC Energy Corp and Eni SPA 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 Eni SpA ADR are associated (or correlated) with TC Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TC Energy Corp has no effect on the direction of Eni SPA i.e., Eni SPA and TC Energy go up and down completely randomly.
Pair Corralation between Eni SPA and TC Energy
Taking into account the 90-day investment horizon Eni SpA ADR is expected to generate 1.0 times more return on investment than TC Energy. However, Eni SPA is 1.0 times more volatile than TC Energy Corp. It trades about 0.16 of its potential returns per unit of risk. TC Energy Corp is currently generating about 0.03 per unit of risk. If you would invest 3,512 in Eni SpA ADR on October 7, 2025 and sell it today you would earn a total of 392.00 from holding Eni SpA ADR or generate 11.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eni SpA ADR vs. TC Energy Corp
Performance |
| Timeline |
| Eni SpA ADR |
| TC Energy Corp |
Eni SPA and TC Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eni SPA and TC Energy
The main advantage of trading using opposite Eni SPA and TC Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eni SPA position performs unexpectedly, TC Energy 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 TC Energy will offset losses from the drop in TC Energy's long position.| Eni SPA vs. Kinder Morgan | Eni SPA vs. Equinor ASA ADR | Eni SPA vs. Energy Transfer LP | Eni SPA vs. TC Energy Corp |
| TC Energy vs. MPLX LP | TC Energy vs. Kinder Morgan | TC Energy vs. Energy Transfer LP | TC Energy vs. Cheniere Energy |
Check out your portfolio center.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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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