Correlation Between Petroleo Brasileiro and Nordea Invest
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By analyzing existing cross correlation between Petroleo Brasileiro Petrobras and Nordea Invest Stabile, you can compare the effects of market volatilities on Petroleo Brasileiro and Nordea Invest 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 Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and Nordea Invest.
Diversification Opportunities for Petroleo Brasileiro and Nordea Invest
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Petroleo and Nordea is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and Nordea Invest Stabile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Stabile 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 Nordea Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Invest Stabile has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and Nordea Invest go up and down completely randomly.
Pair Corralation between Petroleo Brasileiro and Nordea Invest
Considering the 90-day investment horizon Petroleo Brasileiro Petrobras is expected to generate 3.63 times more return on investment than Nordea Invest. However, Petroleo Brasileiro is 3.63 times more volatile than Nordea Invest Stabile. It trades about 0.07 of its potential returns per unit of risk. Nordea Invest Stabile is currently generating about 0.06 per unit of risk. If you would invest 722.00 in Petroleo Brasileiro Petrobras on September 19, 2024 and sell it today you would earn a total of 562.00 from holding Petroleo Brasileiro Petrobras or generate 77.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.37% |
| Values | Daily Returns |
Petroleo Brasileiro Petrobras vs. Nordea Invest Stabile
Performance |
| Timeline |
| Petroleo Brasileiro |
| Nordea Invest Stabile |
Petroleo Brasileiro and Nordea Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petroleo Brasileiro and Nordea Invest
The main advantage of trading using opposite Petroleo Brasileiro and Nordea Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, Nordea Invest 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 Nordea Invest will offset losses from the drop in Nordea Invest'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 |
| Nordea Invest vs. NTG Nordic Transport | Nordea Invest vs. Skjern Bank AS | Nordea Invest vs. Danske Andelskassers Bank | Nordea Invest vs. Jyske Bank AS |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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