Correlation Between Tenaris SA and China Coal
Can any of the company-specific risk be diversified away by investing in both Tenaris SA and China Coal 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 China Coal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tenaris SA and China Coal Energy, you can compare the effects of market volatilities on Tenaris SA and China Coal 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 China Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenaris SA and China Coal.
Diversification Opportunities for Tenaris SA and China Coal
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tenaris and China is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Tenaris SA and China Coal Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Coal Energy 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 are associated (or correlated) with China Coal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Coal Energy has no effect on the direction of Tenaris SA i.e., Tenaris SA and China Coal go up and down completely randomly.
Pair Corralation between Tenaris SA and China Coal
Assuming the 90 days horizon Tenaris SA is expected to generate 1.34 times more return on investment than China Coal. However, Tenaris SA is 1.34 times more volatile than China Coal Energy. It trades about 0.09 of its potential returns per unit of risk. China Coal Energy is currently generating about 0.04 per unit of risk. If you would invest 1,762 in Tenaris SA on August 21, 2025 and sell it today you would earn a total of 232.00 from holding Tenaris SA or generate 13.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Tenaris SA vs. China Coal Energy
Performance |
| Timeline |
| Tenaris SA |
| China Coal Energy |
Risk-Adjusted Performance
Weak
Weak | Strong |
Tenaris SA and China Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tenaris SA and China Coal
The main advantage of trading using opposite Tenaris SA and China Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenaris SA position performs unexpectedly, China Coal 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 China Coal will offset losses from the drop in China Coal's long position.| Tenaris SA vs. Repsol SA | Tenaris SA vs. OMV Aktiengesellschaft | Tenaris SA vs. Inpex | Tenaris SA vs. Repsol SA |
| China Coal vs. Yanzhou Coal Mining | China Coal vs. Yanzhou Coal Mining | China Coal vs. Tenaris SA | China Coal vs. PTT Exploration Production |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |