Correlation Between Petroleo Brasileiro and GRUPO ECOENER
Can any of the company-specific risk be diversified away by investing in both Petroleo Brasileiro and GRUPO ECOENER at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Petroleo Brasileiro and GRUPO ECOENER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Petroleo Brasileiro Petrobras and GRUPO ECOENER EO, you can compare the effects of market volatilities on Petroleo Brasileiro and GRUPO ECOENER 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 GRUPO ECOENER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and GRUPO ECOENER.
Diversification Opportunities for Petroleo Brasileiro and GRUPO ECOENER
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Petroleo and GRUPO is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and GRUPO ECOENER EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRUPO ECOENER EO 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 GRUPO ECOENER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRUPO ECOENER EO has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and GRUPO ECOENER go up and down completely randomly.
Pair Corralation between Petroleo Brasileiro and GRUPO ECOENER
Considering the 90-day investment horizon Petroleo Brasileiro is expected to generate 5.35 times less return on investment than GRUPO ECOENER. In addition to that, Petroleo Brasileiro is 1.31 times more volatile than GRUPO ECOENER EO. It trades about 0.06 of its total potential returns per unit of risk. GRUPO ECOENER EO is currently generating about 0.42 per unit of volatility. If you would invest 437.00 in GRUPO ECOENER EO on October 13, 2024 and sell it today you would earn a total of 48.00 from holding GRUPO ECOENER EO or generate 10.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Petroleo Brasileiro Petrobras vs. GRUPO ECOENER EO
Performance |
| Timeline |
| Petroleo Brasileiro |
| GRUPO ECOENER EO |
Petroleo Brasileiro and GRUPO ECOENER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petroleo Brasileiro and GRUPO ECOENER
The main advantage of trading using opposite Petroleo Brasileiro and GRUPO ECOENER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, GRUPO ECOENER 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 GRUPO ECOENER will offset losses from the drop in GRUPO ECOENER'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 |
| GRUPO ECOENER vs. Charter Communications | GRUPO ECOENER vs. Daito Trust Construction | GRUPO ECOENER vs. Cairo Communication SpA | GRUPO ECOENER vs. WillScot Mobile Mini |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |