Correlation Between Tenaris SA and ScanTech
Can any of the company-specific risk be diversified away by investing in both Tenaris SA and ScanTech 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 ScanTech 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 ScanTech AI Systems, you can compare the effects of market volatilities on Tenaris SA and ScanTech 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 ScanTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenaris SA and ScanTech.
Diversification Opportunities for Tenaris SA and ScanTech
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tenaris and ScanTech is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Tenaris SA ADR and ScanTech AI Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanTech AI Systems 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 ScanTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScanTech AI Systems has no effect on the direction of Tenaris SA i.e., Tenaris SA and ScanTech go up and down completely randomly.
Pair Corralation between Tenaris SA and ScanTech
Allowing for the 90-day total investment horizon Tenaris SA ADR is expected to generate 0.3 times more return on investment than ScanTech. However, Tenaris SA ADR is 3.31 times less risky than ScanTech. It trades about 0.16 of its potential returns per unit of risk. ScanTech AI Systems is currently generating about -0.25 per unit of risk. If you would invest 3,153 in Tenaris SA ADR on April 21, 2025 and sell it today you would earn a total of 513.00 from holding Tenaris SA ADR or generate 16.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tenaris SA ADR vs. ScanTech AI Systems
Performance |
| Timeline |
| Tenaris SA ADR |
| ScanTech AI Systems |
Tenaris SA and ScanTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tenaris SA and ScanTech
The main advantage of trading using opposite Tenaris SA and ScanTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenaris SA position performs unexpectedly, ScanTech 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 ScanTech will offset losses from the drop in ScanTech's long position.| Tenaris SA vs. NOV Inc | Tenaris SA vs. Cactus Inc | Tenaris SA vs. Baker Hughes Co | Tenaris SA vs. ChampionX |
| ScanTech vs. Uber Technologies | ScanTech vs. Analog Devices | ScanTech vs. SunOpta | ScanTech vs. Nextplat Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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