Correlation Between Petroleo Brasileiro and 37190AAA7
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By analyzing existing cross correlation between Petroleo Brasileiro Petrobras and G 175 10 APR 26, you can compare the effects of market volatilities on Petroleo Brasileiro and 37190AAA7 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 37190AAA7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and 37190AAA7.
Diversification Opportunities for Petroleo Brasileiro and 37190AAA7
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Petroleo and 37190AAA7 is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and G 175 10 APR 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 37190AAA7 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 37190AAA7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 37190AAA7 has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and 37190AAA7 go up and down completely randomly.
Pair Corralation between Petroleo Brasileiro and 37190AAA7
Considering the 90-day investment horizon Petroleo Brasileiro Petrobras is expected to generate 2.02 times more return on investment than 37190AAA7. However, Petroleo Brasileiro is 2.02 times more volatile than G 175 10 APR 26. It trades about -0.02 of its potential returns per unit of risk. G 175 10 APR 26 is currently generating about -0.07 per unit of risk. If you would invest 1,391 in Petroleo Brasileiro Petrobras on September 24, 2024 and sell it today you would lose (106.50) from holding Petroleo Brasileiro Petrobras or give up 7.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 38.78% |
| Values | Daily Returns |
Petroleo Brasileiro Petrobras vs. G 175 10 APR 26
Performance |
| Timeline |
| Petroleo Brasileiro |
| 37190AAA7 |
Petroleo Brasileiro and 37190AAA7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petroleo Brasileiro and 37190AAA7
The main advantage of trading using opposite Petroleo Brasileiro and 37190AAA7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, 37190AAA7 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 37190AAA7 will offset losses from the drop in 37190AAA7'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 |
| 37190AAA7 vs. Pinterest | 37190AAA7 vs. Compania Cervecerias Unidas | 37190AAA7 vs. RBC Bearings Incorporated | 37190AAA7 vs. Hudson Pacific Properties |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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