Correlation Between Petroleo Brasileiro and CSG Holding
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By analyzing existing cross correlation between Petroleo Brasileiro Petrobras and CSG Holding Co, you can compare the effects of market volatilities on Petroleo Brasileiro and CSG Holding 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 CSG Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and CSG Holding.
Diversification Opportunities for Petroleo Brasileiro and CSG Holding
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Petroleo and CSG is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and CSG Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSG Holding 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 CSG Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSG Holding has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and CSG Holding go up and down completely randomly.
Pair Corralation between Petroleo Brasileiro and CSG Holding
Considering the 90-day investment horizon Petroleo Brasileiro Petrobras is expected to generate 1.57 times more return on investment than CSG Holding. However, Petroleo Brasileiro is 1.57 times more volatile than CSG Holding Co. It trades about 0.43 of its potential returns per unit of risk. CSG Holding Co is currently generating about -0.11 per unit of risk. If you would invest 1,249 in Petroleo Brasileiro Petrobras on October 20, 2024 and sell it today you would earn a total of 123.00 from holding Petroleo Brasileiro Petrobras or generate 9.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Petroleo Brasileiro Petrobras vs. CSG Holding Co
Performance |
| Timeline |
| Petroleo Brasileiro |
| CSG Holding |
Petroleo Brasileiro and CSG Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petroleo Brasileiro and CSG Holding
The main advantage of trading using opposite Petroleo Brasileiro and CSG Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, CSG Holding 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 CSG Holding will offset losses from the drop in CSG Holding'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 |
| CSG Holding vs. Sichuan Yahua Industrial | CSG Holding vs. Western Metal Materials | CSG Holding vs. Hubei Xingfa Chemicals | CSG Holding vs. Ningbo Fujia Industrial |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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