Correlation Between Petroleo Brasileiro and Allan Gray
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By analyzing existing cross correlation between Petroleo Brasileiro Petrobras and Allan Gray , you can compare the effects of market volatilities on Petroleo Brasileiro and Allan Gray 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 Allan Gray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and Allan Gray.
Diversification Opportunities for Petroleo Brasileiro and Allan Gray
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Petroleo and Allan is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and Allan Gray in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allan Gray 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 Allan Gray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allan Gray has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and Allan Gray go up and down completely randomly.
Pair Corralation between Petroleo Brasileiro and Allan Gray
Considering the 90-day investment horizon Petroleo Brasileiro Petrobras is expected to generate 1.1 times more return on investment than Allan Gray. However, Petroleo Brasileiro is 1.1 times more volatile than Allan Gray . It trades about 0.41 of its potential returns per unit of risk. Allan Gray is currently generating about 0.15 per unit of risk. If you would invest 1,258 in Petroleo Brasileiro Petrobras on October 21, 2024 and sell it today you would earn a total of 114.00 from holding Petroleo Brasileiro Petrobras or generate 9.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Petroleo Brasileiro Petrobras vs. Allan Gray
Performance |
| Timeline |
| Petroleo Brasileiro |
| Allan Gray |
Petroleo Brasileiro and Allan Gray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petroleo Brasileiro and Allan Gray
The main advantage of trading using opposite Petroleo Brasileiro and Allan Gray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, Allan Gray 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 Allan Gray will offset losses from the drop in Allan Gray'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 |
| Allan Gray vs. Absa Multi Managed | Allan Gray vs. Sasol Ltd Bee | Allan Gray vs. Growthpoint Properties | Allan Gray vs. AfricaRhodium ETF |
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 CEOs Directory module to screen CEOs from public companies around the world.
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