Correlation Between Petroleo Brasileiro and IHLAS HOLDING
Can any of the company-specific risk be diversified away by investing in both Petroleo Brasileiro and IHLAS HOLDING 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 IHLAS HOLDING 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 IHLAS HOLDING, you can compare the effects of market volatilities on Petroleo Brasileiro and IHLAS HOLDING 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 IHLAS HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and IHLAS HOLDING.
Diversification Opportunities for Petroleo Brasileiro and IHLAS HOLDING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Petroleo and IHLAS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and IHLAS HOLDING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHLAS HOLDING 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 IHLAS HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IHLAS HOLDING has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and IHLAS HOLDING go up and down completely randomly.
Pair Corralation between Petroleo Brasileiro and IHLAS HOLDING
If you would invest 1,131 in Petroleo Brasileiro Petrobras on September 12, 2024 and sell it today you would earn a total of 328.50 from holding Petroleo Brasileiro Petrobras or generate 29.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Petroleo Brasileiro Petrobras vs. IHLAS HOLDING
Performance |
| Timeline |
| Petroleo Brasileiro |
| IHLAS HOLDING |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Petroleo Brasileiro and IHLAS HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petroleo Brasileiro and IHLAS HOLDING
The main advantage of trading using opposite Petroleo Brasileiro and IHLAS HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, IHLAS HOLDING 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 IHLAS HOLDING will offset losses from the drop in IHLAS HOLDING'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 |
| IHLAS HOLDING vs. AAC TECHNOLOGHLDGADR | IHLAS HOLDING vs. Entravision Communications | IHLAS HOLDING vs. ACCSYS TECHPLC EO | IHLAS HOLDING vs. THORNEY TECHS LTD |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |