Correlation Between STMicroelectronics and Eni SPA
Can any of the company-specific risk be diversified away by investing in both STMicroelectronics and Eni SPA 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 STMicroelectronics and Eni SPA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STMicroelectronics NV and Eni SpA ADR, you can compare the effects of market volatilities on STMicroelectronics and Eni SPA 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 STMicroelectronics with a short position of Eni SPA. Check out your portfolio center. Please also check ongoing floating volatility patterns of STMicroelectronics and Eni SPA.
Diversification Opportunities for STMicroelectronics and Eni SPA
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between STMicroelectronics and Eni is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding STMicroelectronics NV and Eni SpA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eni SpA ADR and STMicroelectronics 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 STMicroelectronics NV are associated (or correlated) with Eni SPA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eni SpA ADR has no effect on the direction of STMicroelectronics i.e., STMicroelectronics and Eni SPA go up and down completely randomly.
Pair Corralation between STMicroelectronics and Eni SPA
Assuming the 90 days horizon STMicroelectronics is expected to generate 18.23 times less return on investment than Eni SPA. In addition to that, STMicroelectronics is 2.3 times more volatile than Eni SpA ADR. It trades about 0.0 of its total potential returns per unit of risk. Eni SpA ADR is currently generating about 0.15 per unit of volatility. If you would invest 3,369 in Eni SpA ADR on September 8, 2025 and sell it today you would earn a total of 352.00 from holding Eni SpA ADR or generate 10.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
STMicroelectronics NV vs. Eni SpA ADR
Performance |
| Timeline |
| STMicroelectronics |
| Eni SpA ADR |
STMicroelectronics and Eni SPA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STMicroelectronics and Eni SPA
The main advantage of trading using opposite STMicroelectronics and Eni SPA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STMicroelectronics position performs unexpectedly, Eni SPA 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 Eni SPA will offset losses from the drop in Eni SPA's long position.| STMicroelectronics vs. NVIDIA | STMicroelectronics vs. Broadcom | STMicroelectronics vs. Taiwan Semiconductor Manufacturing | STMicroelectronics vs. Advanced Micro Devices |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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