Correlation Between Petroleo Brasileiro and Satyamitra Kemas
Can any of the company-specific risk be diversified away by investing in both Petroleo Brasileiro and Satyamitra Kemas 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 Satyamitra Kemas 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 Satyamitra Kemas Lestari, you can compare the effects of market volatilities on Petroleo Brasileiro and Satyamitra Kemas 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 Satyamitra Kemas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and Satyamitra Kemas.
Diversification Opportunities for Petroleo Brasileiro and Satyamitra Kemas
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Petroleo and Satyamitra is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and Satyamitra Kemas Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satyamitra Kemas Lestari 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 Satyamitra Kemas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satyamitra Kemas Lestari has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and Satyamitra Kemas go up and down completely randomly.
Pair Corralation between Petroleo Brasileiro and Satyamitra Kemas
Considering the 90-day investment horizon Petroleo Brasileiro Petrobras is expected to generate 1.47 times more return on investment than Satyamitra Kemas. However, Petroleo Brasileiro is 1.47 times more volatile than Satyamitra Kemas Lestari. It trades about 0.0 of its potential returns per unit of risk. Satyamitra Kemas Lestari is currently generating about -0.03 per unit of risk. If you would invest 1,454 in Petroleo Brasileiro Petrobras on October 22, 2024 and sell it today you would lose (82.00) from holding Petroleo Brasileiro Petrobras or give up 5.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.3% |
| Values | Daily Returns |
Petroleo Brasileiro Petrobras vs. Satyamitra Kemas Lestari
Performance |
| Timeline |
| Petroleo Brasileiro |
| Satyamitra Kemas Lestari |
Petroleo Brasileiro and Satyamitra Kemas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petroleo Brasileiro and Satyamitra Kemas
The main advantage of trading using opposite Petroleo Brasileiro and Satyamitra Kemas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, Satyamitra Kemas 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 Satyamitra Kemas will offset losses from the drop in Satyamitra Kemas' 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 |
| Satyamitra Kemas vs. Saraswanti Anugerah Makmur | Satyamitra Kemas vs. Panca Budi Idaman | Satyamitra Kemas vs. Indonesia Fibreboard Industry | Satyamitra Kemas vs. Kencana Energi Lestari |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |