Correlation Between Petroleo Brasileiro and JPMORGAN ETFS
Can any of the company-specific risk be diversified away by investing in both Petroleo Brasileiro and JPMORGAN ETFS 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 JPMORGAN ETFS 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 JPMORGAN ETFS ICAV, you can compare the effects of market volatilities on Petroleo Brasileiro and JPMORGAN ETFS 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 JPMORGAN ETFS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and JPMORGAN ETFS.
Diversification Opportunities for Petroleo Brasileiro and JPMORGAN ETFS
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Petroleo and JPMORGAN is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and JPMORGAN ETFS ICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMORGAN ETFS ICAV 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 JPMORGAN ETFS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMORGAN ETFS ICAV has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and JPMORGAN ETFS go up and down completely randomly.
Pair Corralation between Petroleo Brasileiro and JPMORGAN ETFS
Considering the 90-day investment horizon Petroleo Brasileiro is expected to generate 1.36 times less return on investment than JPMORGAN ETFS. In addition to that, Petroleo Brasileiro is 2.35 times more volatile than JPMORGAN ETFS ICAV. It trades about 0.06 of its total potential returns per unit of risk. JPMORGAN ETFS ICAV is currently generating about 0.18 per unit of volatility. If you would invest 256,850 in JPMORGAN ETFS ICAV on September 15, 2024 and sell it today you would earn a total of 8,275 from holding JPMORGAN ETFS ICAV or generate 3.22% 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. JPMORGAN ETFS ICAV
Performance |
| Timeline |
| Petroleo Brasileiro |
| JPMORGAN ETFS ICAV |
Petroleo Brasileiro and JPMORGAN ETFS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petroleo Brasileiro and JPMORGAN ETFS
The main advantage of trading using opposite Petroleo Brasileiro and JPMORGAN ETFS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, JPMORGAN ETFS 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 JPMORGAN ETFS will offset losses from the drop in JPMORGAN ETFS'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 |
| JPMORGAN ETFS vs. JPMORGAN ETFS ICAV | JPMORGAN ETFS vs. JPMORGAN ETFS ICAV | JPMORGAN ETFS vs. JPMORGAN ETFS ICAV | JPMORGAN ETFS vs. JPMORGAN ETFS ICAV |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |