Correlation Between Petroleo Brasileiro and Sihui Fuji
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By analyzing existing cross correlation between Petroleo Brasileiro Petrobras and Sihui Fuji Electronics, you can compare the effects of market volatilities on Petroleo Brasileiro and Sihui Fuji 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 Sihui Fuji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and Sihui Fuji.
Diversification Opportunities for Petroleo Brasileiro and Sihui Fuji
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Petroleo and Sihui is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and Sihui Fuji Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sihui Fuji Electronics 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 Sihui Fuji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sihui Fuji Electronics has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and Sihui Fuji go up and down completely randomly.
Pair Corralation between Petroleo Brasileiro and Sihui Fuji
Considering the 90-day investment horizon Petroleo Brasileiro Petrobras is expected to generate 0.47 times more return on investment than Sihui Fuji. However, Petroleo Brasileiro Petrobras is 2.12 times less risky than Sihui Fuji. It trades about 0.09 of its potential returns per unit of risk. Sihui Fuji Electronics is currently generating about 0.02 per unit of risk. If you would invest 1,313 in Petroleo Brasileiro Petrobras on October 14, 2024 and sell it today you would earn a total of 35.00 from holding Petroleo Brasileiro Petrobras or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Petroleo Brasileiro Petrobras vs. Sihui Fuji Electronics
Performance |
| Timeline |
| Petroleo Brasileiro |
| Sihui Fuji Electronics |
Petroleo Brasileiro and Sihui Fuji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petroleo Brasileiro and Sihui Fuji
The main advantage of trading using opposite Petroleo Brasileiro and Sihui Fuji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, Sihui Fuji 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 Sihui Fuji will offset losses from the drop in Sihui Fuji'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 |
| Sihui Fuji vs. Huizhou Speed Wireless | Sihui Fuji vs. Haima Automobile Group | Sihui Fuji vs. Iat Automobile Technology | Sihui Fuji vs. Guangdong Jingyi Metal |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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