Correlation Between PDG Realty and Refinaria
Can any of the company-specific risk be diversified away by investing in both PDG Realty and Refinaria 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 PDG Realty and Refinaria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PDG Realty SA and Refinaria de Petrleos, you can compare the effects of market volatilities on PDG Realty and Refinaria 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 PDG Realty with a short position of Refinaria. Check out your portfolio center. Please also check ongoing floating volatility patterns of PDG Realty and Refinaria.
Diversification Opportunities for PDG Realty and Refinaria
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PDG and Refinaria is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding PDG Realty SA and Refinaria de Petrleos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Refinaria de Petrleos and PDG Realty 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 PDG Realty SA are associated (or correlated) with Refinaria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Refinaria de Petrleos has no effect on the direction of PDG Realty i.e., PDG Realty and Refinaria go up and down completely randomly.
Pair Corralation between PDG Realty and Refinaria
If you would invest 1.00 in PDG Realty SA on August 28, 2024 and sell it today you would earn a total of 0.00 from holding PDG Realty SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PDG Realty SA vs. Refinaria de Petrleos
Performance |
| Timeline |
| PDG Realty SA |
| Refinaria de Petrleos |
PDG Realty and Refinaria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PDG Realty and Refinaria
The main advantage of trading using opposite PDG Realty and Refinaria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PDG Realty position performs unexpectedly, Refinaria 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 Refinaria will offset losses from the drop in Refinaria's long position.| PDG Realty vs. Baidu Inc | PDG Realty vs. Deutsche Bank Aktiengesellschaft | PDG Realty vs. HSBC Holdings plc | PDG Realty vs. The Bank of |
| Refinaria vs. Lupatech SA | Refinaria vs. Recrusul SA | Refinaria vs. PDG Realty SA | Refinaria vs. OSX Brasil SA |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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