Correlation Between Petroleo Brasileiro and B GRIMM
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By analyzing existing cross correlation between Petroleo Brasileiro Petrobras and B GRIMM POWER, you can compare the effects of market volatilities on Petroleo Brasileiro and B GRIMM 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 B GRIMM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and B GRIMM.
Diversification Opportunities for Petroleo Brasileiro and B GRIMM
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Petroleo and BGRIM-R is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and B GRIMM POWER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B GRIMM POWER 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 B GRIMM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of B GRIMM POWER has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and B GRIMM go up and down completely randomly.
Pair Corralation between Petroleo Brasileiro and B GRIMM
Considering the 90-day investment horizon Petroleo Brasileiro Petrobras is expected to generate 0.54 times more return on investment than B GRIMM. However, Petroleo Brasileiro Petrobras is 1.84 times less risky than B GRIMM. It trades about 0.01 of its potential returns per unit of risk. B GRIMM POWER is currently generating about -0.04 per unit of risk. If you would invest 1,379 in Petroleo Brasileiro Petrobras on September 14, 2024 and sell it today you would lose (18.00) from holding Petroleo Brasileiro Petrobras or give up 1.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.28% |
| Values | Daily Returns |
Petroleo Brasileiro Petrobras vs. B GRIMM POWER
Performance |
| Timeline |
| Petroleo Brasileiro |
| B GRIMM POWER |
Petroleo Brasileiro and B GRIMM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petroleo Brasileiro and B GRIMM
The main advantage of trading using opposite Petroleo Brasileiro and B GRIMM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, B GRIMM 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 B GRIMM will offset losses from the drop in B GRIMM'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 |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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