Correlation Between HAGA SA and Refinaria
Can any of the company-specific risk be diversified away by investing in both HAGA SA and Refinaria 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 HAGA SA and Refinaria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HAGA SA Indstria and Refinaria de Petrleos, you can compare the effects of market volatilities on HAGA SA and Refinaria 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 HAGA SA with a short position of Refinaria. Check out your portfolio center. Please also check ongoing floating volatility patterns of HAGA SA and Refinaria.
Diversification Opportunities for HAGA SA and Refinaria
Excellent diversification
The 3 months correlation between HAGA and Refinaria is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding HAGA SA Indstria and Refinaria de Petrleos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Refinaria de Petrleos and HAGA 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 HAGA SA Indstria are associated (or correlated) with Refinaria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Refinaria de Petrleos has no effect on the direction of HAGA SA i.e., HAGA SA and Refinaria go up and down completely randomly.
Pair Corralation between HAGA SA and Refinaria
Assuming the 90 days trading horizon HAGA SA Indstria is expected to under-perform the Refinaria. But the preferred stock apears to be less risky and, when comparing its historical volatility, HAGA SA Indstria is 1.02 times less risky than Refinaria. The preferred stock trades about -0.02 of its potential returns per unit of risk. The Refinaria de Petrleos is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 285.00 in Refinaria de Petrleos on November 18, 2024 and sell it today you would earn a total of 7.00 from holding Refinaria de Petrleos or generate 2.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HAGA SA Indstria vs. Refinaria de Petrleos
Performance |
| Timeline |
| HAGA SA Indstria |
| Refinaria de Petrleos |
HAGA SA and Refinaria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HAGA SA and Refinaria
The main advantage of trading using opposite HAGA SA and Refinaria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HAGA SA position performs unexpectedly, Refinaria 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 Refinaria will offset losses from the drop in Refinaria's long position.| HAGA SA vs. Recrusul SA | HAGA SA vs. Lupatech SA | HAGA SA vs. Viver Incorporadora e | HAGA SA vs. Triunfo Participaes e |
| Refinaria vs. Lupatech SA | Refinaria vs. Recrusul SA | Refinaria vs. PDG Realty SA | Refinaria vs. OSX Brasil SA |
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 Stocks Directory module to find actively traded stocks across global markets.
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