Correlation Between SP Merval and Petrobras Argentina
Can any of the company-specific risk be diversified away by investing in both SP Merval and Petrobras Argentina 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 SP Merval and Petrobras Argentina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SP Merval and Petrobras Argentina SA, you can compare the effects of market volatilities on SP Merval and Petrobras Argentina 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 SP Merval with a short position of Petrobras Argentina. Check out your portfolio center. Please also check ongoing floating volatility patterns of SP Merval and Petrobras Argentina.
Diversification Opportunities for SP Merval and Petrobras Argentina
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MERV and Petrobras is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SP Merval and Petrobras Argentina SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petrobras Argentina and SP Merval 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 SP Merval are associated (or correlated) with Petrobras Argentina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petrobras Argentina has no effect on the direction of SP Merval i.e., SP Merval and Petrobras Argentina go up and down completely randomly.
Pair Corralation between SP Merval and Petrobras Argentina
If you would invest (100.00) in Petrobras Argentina SA on September 5, 2024 and sell it today you would earn a total of 100.00 from holding Petrobras Argentina SA or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SP Merval vs. Petrobras Argentina SA
Performance |
| Timeline |
SP Merval and Petrobras Argentina Volatility Contrast
Predicted Return Density |
| Returns |
SP Merval
Pair trading matchups for SP Merval
Petrobras Argentina SA
Pair trading matchups for Petrobras Argentina
Pair Trading with SP Merval and Petrobras Argentina
The main advantage of trading using opposite SP Merval and Petrobras Argentina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SP Merval position performs unexpectedly, Petrobras Argentina 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 Petrobras Argentina will offset losses from the drop in Petrobras Argentina's long position.| SP Merval vs. United States Steel | SP Merval vs. Compania de Transporte | SP Merval vs. Transportadora de Gas | SP Merval vs. Telecom Argentina |
| Petrobras Argentina vs. Agrometal SAI | Petrobras Argentina vs. Compania de Transporte | Petrobras Argentina vs. Transportadora de Gas | Petrobras Argentina vs. United States Steel |
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.
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