Correlation Between Tenaris SA and Vantage Drilling
Can any of the company-specific risk be diversified away by investing in both Tenaris SA and Vantage Drilling 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 Vantage Drilling 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 Vantage Drilling International, you can compare the effects of market volatilities on Tenaris SA and Vantage Drilling 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 Vantage Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenaris SA and Vantage Drilling.
Diversification Opportunities for Tenaris SA and Vantage Drilling
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tenaris and Vantage is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Tenaris SA ADR and Vantage Drilling International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vantage Drilling Int 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 Vantage Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vantage Drilling Int has no effect on the direction of Tenaris SA i.e., Tenaris SA and Vantage Drilling go up and down completely randomly.
Pair Corralation between Tenaris SA and Vantage Drilling
If you would invest 3,220 in Tenaris SA ADR on April 30, 2025 and sell it today you would earn a total of 583.00 from holding Tenaris SA ADR or generate 18.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tenaris SA ADR vs. Vantage Drilling International
Performance |
| Timeline |
| Tenaris SA ADR |
| Vantage Drilling Int |
Tenaris SA and Vantage Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tenaris SA and Vantage Drilling
The main advantage of trading using opposite Tenaris SA and Vantage Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenaris SA position performs unexpectedly, Vantage Drilling 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 Vantage Drilling will offset losses from the drop in Vantage Drilling's long position.| Tenaris SA vs. NOV Inc | Tenaris SA vs. Cactus Inc | Tenaris SA vs. Baker Hughes Co | Tenaris SA vs. Ternium SA ADR |
| Vantage Drilling vs. PHX Energy Services | Vantage Drilling vs. Total Energy Services | Vantage Drilling vs. Prairie Provident Resources | Vantage Drilling vs. Unit Corporation |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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