Correlation Between Petroleo Brasileiro and PARKER
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By analyzing existing cross correlation between Petroleo Brasileiro Petrobras and PARKER HANNIFIN P MEDIUM, you can compare the effects of market volatilities on Petroleo Brasileiro and PARKER 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 PARKER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and PARKER.
Diversification Opportunities for Petroleo Brasileiro and PARKER
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Petroleo and PARKER is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and PARKER HANNIFIN P MEDIUM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PARKER HANNIFIN P 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 PARKER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PARKER HANNIFIN P has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and PARKER go up and down completely randomly.
Pair Corralation between Petroleo Brasileiro and PARKER
Considering the 90-day investment horizon Petroleo Brasileiro Petrobras is expected to generate 1.62 times more return on investment than PARKER. However, Petroleo Brasileiro is 1.62 times more volatile than PARKER HANNIFIN P MEDIUM. It trades about 0.09 of its potential returns per unit of risk. PARKER HANNIFIN P MEDIUM is currently generating about -0.13 per unit of risk. If you would invest 1,381 in Petroleo Brasileiro Petrobras on September 14, 2024 and sell it today you would earn a total of 45.00 from holding Petroleo Brasileiro Petrobras or generate 3.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Petroleo Brasileiro Petrobras vs. PARKER HANNIFIN P MEDIUM
Performance |
| Timeline |
| Petroleo Brasileiro |
| PARKER HANNIFIN P |
Petroleo Brasileiro and PARKER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petroleo Brasileiro and PARKER
The main advantage of trading using opposite Petroleo Brasileiro and PARKER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, PARKER 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 PARKER will offset losses from the drop in PARKER'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 |
| PARKER vs. Delek Logistics Partners | PARKER vs. JD Sports Fashion | PARKER vs. Eastman Kodak Co | PARKER vs. Fernhill Beverage |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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