Correlation Between Petroleo Brasileiro and Lagardere Active
Can any of the company-specific risk be diversified away by investing in both Petroleo Brasileiro and Lagardere Active 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 Lagardere Active 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 Lagardere Active Broadcast, you can compare the effects of market volatilities on Petroleo Brasileiro and Lagardere Active 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 Lagardere Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and Lagardere Active.
Diversification Opportunities for Petroleo Brasileiro and Lagardere Active
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Petroleo and Lagardere is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and Lagardere Active Broadcast in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lagardere Active Bro 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 Lagardere Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lagardere Active Bro has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and Lagardere Active go up and down completely randomly.
Pair Corralation between Petroleo Brasileiro and Lagardere Active
If you would invest (100.00) in Lagardere Active Broadcast on September 23, 2024 and sell it today you would earn a total of 100.00 from holding Lagardere Active Broadcast or generate -100.0% 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. Lagardere Active Broadcast
Performance |
| Timeline |
| Petroleo Brasileiro |
| Lagardere Active Bro |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Petroleo Brasileiro and Lagardere Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petroleo Brasileiro and Lagardere Active
The main advantage of trading using opposite Petroleo Brasileiro and Lagardere Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, Lagardere Active 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 Lagardere Active will offset losses from the drop in Lagardere Active'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 |
| Lagardere Active vs. Gaztransport Technigaz SAS | Lagardere Active vs. Fiducial Office Solutions | Lagardere Active vs. Sidetrade | Lagardere Active vs. Jacquet Metal Service |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |