Correlation Between Petroleo Brasileiro and China Galaxy
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By analyzing existing cross correlation between Petroleo Brasileiro Petrobras and China Galaxy Securities, you can compare the effects of market volatilities on Petroleo Brasileiro and China Galaxy 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 China Galaxy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and China Galaxy.
Diversification Opportunities for Petroleo Brasileiro and China Galaxy
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Petroleo and China is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and China Galaxy Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Galaxy Securities 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 China Galaxy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Galaxy Securities has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and China Galaxy go up and down completely randomly.
Pair Corralation between Petroleo Brasileiro and China Galaxy
Considering the 90-day investment horizon Petroleo Brasileiro Petrobras is expected to generate 0.74 times more return on investment than China Galaxy. However, Petroleo Brasileiro Petrobras is 1.35 times less risky than China Galaxy. It trades about 0.23 of its potential returns per unit of risk. China Galaxy Securities is currently generating about -0.18 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 | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Petroleo Brasileiro Petrobras vs. China Galaxy Securities
Performance |
| Timeline |
| Petroleo Brasileiro |
| China Galaxy Securities |
Petroleo Brasileiro and China Galaxy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petroleo Brasileiro and China Galaxy
The main advantage of trading using opposite Petroleo Brasileiro and China Galaxy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, China Galaxy 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 China Galaxy will offset losses from the drop in China Galaxy'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 |
| China Galaxy vs. Jinlong Machinery Electronic | China Galaxy vs. Iat Automobile Technology | China Galaxy vs. Huasi Agricultural Development | China Galaxy vs. Masterwork 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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