Correlation Between Petroleo Brasileiro and Wenzhou Hongfeng
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By analyzing existing cross correlation between Petroleo Brasileiro Petrobras and Wenzhou Hongfeng Electrical, you can compare the effects of market volatilities on Petroleo Brasileiro and Wenzhou Hongfeng 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 Hongfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and Wenzhou Hongfeng.
Diversification Opportunities for Petroleo Brasileiro and Wenzhou Hongfeng
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Petroleo and Wenzhou is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and Wenzhou Hongfeng Electrical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wenzhou Hongfeng Ele 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 Hongfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wenzhou Hongfeng Ele has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and Wenzhou Hongfeng go up and down completely randomly.
Pair Corralation between Petroleo Brasileiro and Wenzhou Hongfeng
Considering the 90-day investment horizon Petroleo Brasileiro Petrobras is expected to generate 0.62 times more return on investment than Wenzhou Hongfeng. However, Petroleo Brasileiro Petrobras is 1.62 times less risky than Wenzhou Hongfeng. It trades about 0.18 of its potential returns per unit of risk. Wenzhou Hongfeng Electrical is currently generating about -0.01 per unit of risk. If you would invest 1,362 in Petroleo Brasileiro Petrobras on September 12, 2024 and sell it today you would earn a total of 98.00 from holding Petroleo Brasileiro Petrobras or generate 7.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Petroleo Brasileiro Petrobras vs. Wenzhou Hongfeng Electrical
Performance |
| Timeline |
| Petroleo Brasileiro |
| Wenzhou Hongfeng Ele |
Petroleo Brasileiro and Wenzhou Hongfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petroleo Brasileiro and Wenzhou Hongfeng
The main advantage of trading using opposite Petroleo Brasileiro and Wenzhou Hongfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, Wenzhou Hongfeng 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 Hongfeng will offset losses from the drop in Wenzhou Hongfeng'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 Hongfeng vs. YLZ Information Tech | Wenzhou Hongfeng vs. Xiamen Goldenhome Co | Wenzhou Hongfeng vs. ButOne Information Corp | Wenzhou Hongfeng vs. Nanxing Furniture Machinery |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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