Correlation Between Petroleo Brasileiro and ACTIREN B
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By analyzing existing cross correlation between Petroleo Brasileiro Petrobras and ACTIREN B, you can compare the effects of market volatilities on Petroleo Brasileiro and ACTIREN B 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 ACTIREN B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and ACTIREN B.
Diversification Opportunities for Petroleo Brasileiro and ACTIREN B
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Petroleo and ACTIREN is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and ACTIREN B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACTIREN B 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 ACTIREN B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACTIREN B has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and ACTIREN B go up and down completely randomly.
Pair Corralation between Petroleo Brasileiro and ACTIREN B
Considering the 90-day investment horizon Petroleo Brasileiro Petrobras is expected to generate 38.64 times more return on investment than ACTIREN B. However, Petroleo Brasileiro is 38.64 times more volatile than ACTIREN B. It trades about 0.02 of its potential returns per unit of risk. ACTIREN B is currently generating about 0.58 per unit of risk. If you would invest 1,320 in Petroleo Brasileiro Petrobras on September 19, 2024 and sell it today you would earn a total of 32.00 from holding Petroleo Brasileiro Petrobras or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.4% |
| Values | Daily Returns |
Petroleo Brasileiro Petrobras vs. ACTIREN B
Performance |
| Timeline |
| Petroleo Brasileiro |
| ACTIREN B |
Petroleo Brasileiro and ACTIREN B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petroleo Brasileiro and ACTIREN B
The main advantage of trading using opposite Petroleo Brasileiro and ACTIREN B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, ACTIREN B 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 ACTIREN B will offset losses from the drop in ACTIREN B'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 |
| ACTIREN B vs. iShares Global Timber | ACTIREN B vs. Vanguard World | ACTIREN B vs. iShares Trust | ACTIREN B vs. iShares Trust |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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