Correlation Between Red Cat and PETROLEOS
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By analyzing existing cross correlation between Red Cat Holdings and PETROLEOS MEXICANOS 65, you can compare the effects of market volatilities on Red Cat and PETROLEOS 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 Red Cat with a short position of PETROLEOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Red Cat and PETROLEOS.
Diversification Opportunities for Red Cat and PETROLEOS
Excellent diversification
The 3 months correlation between Red and PETROLEOS is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Red Cat Holdings and PETROLEOS MEXICANOS 65 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PETROLEOS MEXICANOS and Red Cat 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 Red Cat Holdings are associated (or correlated) with PETROLEOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PETROLEOS MEXICANOS has no effect on the direction of Red Cat i.e., Red Cat and PETROLEOS go up and down completely randomly.
Pair Corralation between Red Cat and PETROLEOS
Given the investment horizon of 90 days Red Cat Holdings is expected to generate 5.47 times more return on investment than PETROLEOS. However, Red Cat is 5.47 times more volatile than PETROLEOS MEXICANOS 65. It trades about 0.13 of its potential returns per unit of risk. PETROLEOS MEXICANOS 65 is currently generating about 0.01 per unit of risk. If you would invest 93.00 in Red Cat Holdings on August 31, 2024 and sell it today you would earn a total of 1,084 from holding Red Cat Holdings or generate 1165.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Red Cat Holdings vs. PETROLEOS MEXICANOS 65
Performance |
| Timeline |
| Red Cat Holdings |
| PETROLEOS MEXICANOS |
Red Cat and PETROLEOS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Red Cat and PETROLEOS
The main advantage of trading using opposite Red Cat and PETROLEOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Red Cat position performs unexpectedly, PETROLEOS 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 PETROLEOS will offset losses from the drop in PETROLEOS's long position.| Red Cat vs. Quantum Computing | Red Cat vs. Rigetti Computing | Red Cat vs. D Wave Quantum | Red Cat vs. AstroNova |
| PETROLEOS vs. Skillful Craftsman Education | PETROLEOS vs. Lincoln Educational Services | PETROLEOS vs. Logan Ridge Finance | PETROLEOS vs. Coursera |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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