Correlation Between Condor Petroleum and Petroleo Brasileiro
Can any of the company-specific risk be diversified away by investing in both Condor Petroleum and Petroleo Brasileiro 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 Condor Petroleum and Petroleo Brasileiro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Condor Petroleum and Petroleo Brasileiro Petrobras, you can compare the effects of market volatilities on Condor Petroleum and Petroleo Brasileiro 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 Condor Petroleum with a short position of Petroleo Brasileiro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Condor Petroleum and Petroleo Brasileiro.
Diversification Opportunities for Condor Petroleum and Petroleo Brasileiro
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Condor and Petroleo is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Condor Petroleum and Petroleo Brasileiro Petrobras in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petroleo Brasileiro and Condor Petroleum 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 Condor Petroleum are associated (or correlated) with Petroleo Brasileiro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petroleo Brasileiro has no effect on the direction of Condor Petroleum i.e., Condor Petroleum and Petroleo Brasileiro go up and down completely randomly.
Pair Corralation between Condor Petroleum and Petroleo Brasileiro
Assuming the 90 days horizon Condor Petroleum is expected to under-perform the Petroleo Brasileiro. In addition to that, Condor Petroleum is 2.58 times more volatile than Petroleo Brasileiro Petrobras. It trades about -0.12 of its total potential returns per unit of risk. Petroleo Brasileiro Petrobras is currently generating about 0.18 per unit of volatility. If you would invest 1,345 in Petroleo Brasileiro Petrobras on September 1, 2024 and sell it today you would earn a total of 83.00 from holding Petroleo Brasileiro Petrobras or generate 6.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Condor Petroleum vs. Petroleo Brasileiro Petrobras
Performance |
| Timeline |
| Condor Petroleum |
| Petroleo Brasileiro |
Condor Petroleum and Petroleo Brasileiro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Condor Petroleum and Petroleo Brasileiro
The main advantage of trading using opposite Condor Petroleum and Petroleo Brasileiro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Condor Petroleum position performs unexpectedly, Petroleo Brasileiro 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 Petroleo Brasileiro will offset losses from the drop in Petroleo Brasileiro's long position.| Condor Petroleum vs. Petroleo Brasileiro Petrobras | Condor Petroleum vs. Equinor ASA ADR | Condor Petroleum vs. Eni SpA ADR | Condor Petroleum vs. YPF Sociedad Anonima |
| Petroleo Brasileiro vs. Shell PLC ADR | Petroleo Brasileiro vs. BP PLC ADR | Petroleo Brasileiro vs. Suncor Energy | Petroleo Brasileiro vs. Equinor ASA ADR |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |