Correlation Between Petroreconcavo and Hess
Can any of the company-specific risk be diversified away by investing in both Petroreconcavo and Hess 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 Petroreconcavo and Hess into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Petroreconcavo SA and Hess Corporation, you can compare the effects of market volatilities on Petroreconcavo and Hess 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 Petroreconcavo with a short position of Hess. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroreconcavo and Hess.
Diversification Opportunities for Petroreconcavo and Hess
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Petroreconcavo and Hess is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Petroreconcavo SA and Hess Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hess and Petroreconcavo 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 Petroreconcavo SA are associated (or correlated) with Hess. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hess has no effect on the direction of Petroreconcavo i.e., Petroreconcavo and Hess go up and down completely randomly.
Pair Corralation between Petroreconcavo and Hess
If you would invest 1,621 in Petroreconcavo SA on October 29, 2024 and sell it today you would lose (5.00) from holding Petroreconcavo SA or give up 0.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Petroreconcavo SA vs. Hess Corp.
Performance |
| Timeline |
| Petroreconcavo SA |
| Hess |
Petroreconcavo and Hess Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petroreconcavo and Hess
The main advantage of trading using opposite Petroreconcavo and Hess positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroreconcavo position performs unexpectedly, Hess 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 Hess will offset losses from the drop in Hess' long position.| Petroreconcavo vs. ConocoPhillips | Petroreconcavo vs. Occidental Petroleum | Petroreconcavo vs. Devon Energy | Petroreconcavo vs. Hess Corporation |
| Hess vs. ConocoPhillips | Hess vs. Occidental Petroleum | Hess vs. Devon Energy | Hess vs. Diamondback Energy, |
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 CEOs Directory module to screen CEOs from public companies around the world.
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