Correlation Between Petroleo Brasileiro and Shengtak New
Specify exactly 2 symbols:
By analyzing existing cross correlation between Petroleo Brasileiro Petrobras and Shengtak New Material, you can compare the effects of market volatilities on Petroleo Brasileiro and Shengtak New 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 Shengtak New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and Shengtak New.
Diversification Opportunities for Petroleo Brasileiro and Shengtak New
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Petroleo and Shengtak is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and Shengtak New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengtak New Material 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 Shengtak New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengtak New Material has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and Shengtak New go up and down completely randomly.
Pair Corralation between Petroleo Brasileiro and Shengtak New
Considering the 90-day investment horizon Petroleo Brasileiro Petrobras is expected to generate 0.83 times more return on investment than Shengtak New. However, Petroleo Brasileiro Petrobras is 1.2 times less risky than Shengtak New. It trades about 0.23 of its potential returns per unit of risk. Shengtak New Material is currently generating about -0.05 per unit of risk. If you would invest 1,282 in Petroleo Brasileiro Petrobras on October 17, 2024 and sell it today you would earn a total of 98.00 from holding Petroleo Brasileiro Petrobras or generate 7.64% 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. Shengtak New Material
Performance |
| Timeline |
| Petroleo Brasileiro |
| Shengtak New Material |
Petroleo Brasileiro and Shengtak New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petroleo Brasileiro and Shengtak New
The main advantage of trading using opposite Petroleo Brasileiro and Shengtak New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, Shengtak New 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 Shengtak New will offset losses from the drop in Shengtak New'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 |
| Shengtak New vs. Wonders Information | Shengtak New vs. Shenzhen SDG Information | Shengtak New vs. Thinkon Semiconductor Jinzhou | Shengtak New vs. Sharetronic Data Technology |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |