Correlation Between Petroleo Brasileiro and Enbridge Pref
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By analyzing existing cross correlation between Petroleo Brasileiro Petrobras and Enbridge Pref 15, you can compare the effects of market volatilities on Petroleo Brasileiro and Enbridge Pref 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 Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and Enbridge Pref.
Diversification Opportunities for Petroleo Brasileiro and Enbridge Pref
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Petroleo and Enbridge is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and Enbridge Pref 15 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref 15 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 Enbridge Pref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enbridge Pref 15 has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and Enbridge Pref go up and down completely randomly.
Pair Corralation between Petroleo Brasileiro and Enbridge Pref
Considering the 90-day investment horizon Petroleo Brasileiro Petrobras is expected to under-perform the Enbridge Pref. In addition to that, Petroleo Brasileiro is 3.08 times more volatile than Enbridge Pref 15. It trades about -0.24 of its total potential returns per unit of risk. Enbridge Pref 15 is currently generating about 0.37 per unit of volatility. If you would invest 1,806 in Enbridge Pref 15 on September 23, 2024 and sell it today you would earn a total of 89.00 from holding Enbridge Pref 15 or generate 4.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Petroleo Brasileiro Petrobras vs. Enbridge Pref 15
Performance |
| Timeline |
| Petroleo Brasileiro |
| Enbridge Pref 15 |
Petroleo Brasileiro and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petroleo Brasileiro and Enbridge Pref
The main advantage of trading using opposite Petroleo Brasileiro and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, Enbridge Pref 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 Enbridge Pref will offset losses from the drop in Enbridge Pref's long position.| Petroleo Brasileiro vs. Shell PLC ADR | Petroleo Brasileiro vs. Suncor Energy | Petroleo Brasileiro vs. TotalEnergies SE ADR | Petroleo Brasileiro vs. Equinor ASA ADR |
| Enbridge Pref vs. Enbridge Pref 5 | Enbridge Pref vs. Enbridge Pref 11 | Enbridge Pref vs. Enbridge Pref L | Enbridge Pref vs. E Split Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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