Correlation Between Petroleo Brasileiro and Lyxor UCITS
Can any of the company-specific risk be diversified away by investing in both Petroleo Brasileiro and Lyxor UCITS 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 Lyxor UCITS 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 Lyxor UCITS Iboxx, you can compare the effects of market volatilities on Petroleo Brasileiro and Lyxor UCITS 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 Lyxor UCITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and Lyxor UCITS.
Diversification Opportunities for Petroleo Brasileiro and Lyxor UCITS
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Petroleo and Lyxor is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and Lyxor UCITS Iboxx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor UCITS Iboxx 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 Lyxor UCITS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor UCITS Iboxx has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and Lyxor UCITS go up and down completely randomly.
Pair Corralation between Petroleo Brasileiro and Lyxor UCITS
Considering the 90-day investment horizon Petroleo Brasileiro Petrobras is expected to under-perform the Lyxor UCITS. In addition to that, Petroleo Brasileiro is 1.29 times more volatile than Lyxor UCITS Iboxx. It trades about -0.06 of its total potential returns per unit of risk. Lyxor UCITS Iboxx is currently generating about -0.05 per unit of volatility. If you would invest 12,323 in Lyxor UCITS Iboxx on September 19, 2024 and sell it today you would lose (226.00) from holding Lyxor UCITS Iboxx or give up 1.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Petroleo Brasileiro Petrobras vs. Lyxor UCITS Iboxx
Performance |
| Timeline |
| Petroleo Brasileiro |
| Lyxor UCITS Iboxx |
Petroleo Brasileiro and Lyxor UCITS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petroleo Brasileiro and Lyxor UCITS
The main advantage of trading using opposite Petroleo Brasileiro and Lyxor UCITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, Lyxor UCITS 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 Lyxor UCITS will offset losses from the drop in Lyxor UCITS'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 |
| Lyxor UCITS vs. Lyxor SP 500 | Lyxor UCITS vs. Lyxor UCITS Daily | Lyxor UCITS vs. Lyxor UCITS MSCI | Lyxor UCITS vs. Lyxor Treasury 10Y |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |