Correlation Between Petroleo Brasileiro and Wenzhou Yuanfei
Specify exactly 2 symbols:
By analyzing existing cross correlation between Petroleo Brasileiro Petrobras and Wenzhou Yuanfei Pet, you can compare the effects of market volatilities on Petroleo Brasileiro and Wenzhou Yuanfei 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 Petroleo Brasileiro with a short position of Wenzhou Yuanfei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and Wenzhou Yuanfei.
Diversification Opportunities for Petroleo Brasileiro and Wenzhou Yuanfei
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Petroleo and Wenzhou is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and Wenzhou Yuanfei Pet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wenzhou Yuanfei Pet and Petroleo Brasileiro 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 Petroleo Brasileiro Petrobras are associated (or correlated) with Wenzhou Yuanfei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wenzhou Yuanfei Pet has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and Wenzhou Yuanfei go up and down completely randomly.
Pair Corralation between Petroleo Brasileiro and Wenzhou Yuanfei
Considering the 90-day investment horizon Petroleo Brasileiro is expected to generate 10.64 times less return on investment than Wenzhou Yuanfei. But when comparing it to its historical volatility, Petroleo Brasileiro Petrobras is 1.51 times less risky than Wenzhou Yuanfei. It trades about 0.01 of its potential returns per unit of risk. Wenzhou Yuanfei Pet is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,438 in Wenzhou Yuanfei Pet on September 14, 2024 and sell it today you would earn a total of 266.00 from holding Wenzhou Yuanfei Pet or generate 18.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.58% |
| Values | Daily Returns |
Petroleo Brasileiro Petrobras vs. Wenzhou Yuanfei Pet
Performance |
| Timeline |
| Petroleo Brasileiro |
| Wenzhou Yuanfei Pet |
Petroleo Brasileiro and Wenzhou Yuanfei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petroleo Brasileiro and Wenzhou Yuanfei
The main advantage of trading using opposite Petroleo Brasileiro and Wenzhou Yuanfei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, Wenzhou Yuanfei 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 Wenzhou Yuanfei will offset losses from the drop in Wenzhou Yuanfei's long position.| Petroleo Brasileiro vs. Ecopetrol SA ADR | Petroleo Brasileiro vs. Equinor ASA ADR | Petroleo Brasileiro vs. Eni SpA ADR | Petroleo Brasileiro vs. Cenovus Energy |
| Wenzhou Yuanfei vs. Nanjing Putian Telecommunications | Wenzhou Yuanfei vs. Tianjin Realty Development | Wenzhou Yuanfei vs. Kangyue Technology Co | Wenzhou Yuanfei vs. Shenzhen Hifuture Electric |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |