Correlation Between Petroleo Brasileiro and PostRock Energy
Can any of the company-specific risk be diversified away by investing in both Petroleo Brasileiro and PostRock Energy 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 PostRock Energy 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 PostRock Energy Corp, you can compare the effects of market volatilities on Petroleo Brasileiro and PostRock Energy 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 PostRock Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and PostRock Energy.
Diversification Opportunities for Petroleo Brasileiro and PostRock Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Petroleo and PostRock is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and PostRock Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PostRock Energy Corp 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 PostRock Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PostRock Energy Corp has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and PostRock Energy go up and down completely randomly.
Pair Corralation between Petroleo Brasileiro and PostRock Energy
If you would invest 1,320 in Petroleo Brasileiro Petrobras on September 19, 2024 and sell it today you would earn a total of 32.00 from holding Petroleo Brasileiro Petrobras or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.8% |
| Values | Daily Returns |
Petroleo Brasileiro Petrobras vs. PostRock Energy Corp
Performance |
| Timeline |
| Petroleo Brasileiro |
| PostRock Energy Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Petroleo Brasileiro and PostRock Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petroleo Brasileiro and PostRock Energy
The main advantage of trading using opposite Petroleo Brasileiro and PostRock Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, PostRock Energy 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 PostRock Energy will offset losses from the drop in PostRock Energy'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 |
| PostRock Energy vs. Xponential Fitness | PostRock Energy vs. Academy Sports Outdoors | PostRock Energy vs. Valneva SE ADR | PostRock Energy vs. Lipocine |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |