Correlation Between Petroleo Brasileiro and Ingram Micro
Can any of the company-specific risk be diversified away by investing in both Petroleo Brasileiro and Ingram Micro 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 Ingram Micro 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 Ingram Micro, you can compare the effects of market volatilities on Petroleo Brasileiro and Ingram Micro 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 Ingram Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and Ingram Micro.
Diversification Opportunities for Petroleo Brasileiro and Ingram Micro
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Petroleo and Ingram is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and Ingram Micro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingram Micro 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 Ingram Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingram Micro has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and Ingram Micro go up and down completely randomly.
Pair Corralation between Petroleo Brasileiro and Ingram Micro
If you would invest 720.00 in Petroleo Brasileiro Petrobras on September 20, 2024 and sell it today you would earn a total of 583.00 from holding Petroleo Brasileiro Petrobras or generate 80.97% 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. Ingram Micro
Performance |
| Timeline |
| Petroleo Brasileiro |
| Ingram Micro |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Petroleo Brasileiro and Ingram Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petroleo Brasileiro and Ingram Micro
The main advantage of trading using opposite Petroleo Brasileiro and Ingram Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, Ingram Micro 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 Ingram Micro will offset losses from the drop in Ingram Micro'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 |
| Ingram Micro vs. World Houseware Limited | Ingram Micro vs. Edgewell Personal Care | Ingram Micro vs. Inter Parfums | Ingram Micro vs. Analog Devices |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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