Correlation Between Petro Usa and Symbotic

Can any of the company-specific risk be diversified away by investing in both Petro Usa and Symbotic 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 Petro Usa and Symbotic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Petro Usa and Symbotic, you can compare the effects of market volatilities on Petro Usa and Symbotic 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 Petro Usa with a short position of Symbotic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petro Usa and Symbotic.

Diversification Opportunities for Petro Usa and Symbotic

0.0

Correlation Coefficient

Petro Usa  Symbotic

Pay attention - limited upside

The 3 months correlation between Petro and Symbotic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Petro Usa and Symbotic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Symbotic and Petro Usa 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 Petro Usa are associated (or correlated) with Symbotic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Symbotic has no effect on the direction of Petro Usa i.e., Petro Usa and Symbotic go up and down completely randomly.

Pair Corralation between Petro Usa and Symbotic

Given the investment horizon of 90 days Petro Usa is expected to generate 9.54 times more return on investment than Symbotic. However, Petro Usa is 9.54 times more volatile than Symbotic. It trades about 0.07 of its potential returns per unit of risk. Symbotic is currently generating about 0.05 per unit of risk. If you would invest  800.00  in Petro Usa on October 5, 2024 and sell it today you would lose (300.00) from holding Petro Usa or give up 37.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.78%
Values	Daily Returns

Petro Usa  vs.  Symbotic

Petro Usa

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Petro Usa has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively steady basic indicators, Petro Usa is not utilizing all of its potentials. The latest stock price chaos, may contribute to medium-term losses for the stakeholders.

Symbotic

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Symbotic are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Symbotic displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Petro Usa and Symbotic

The main advantage of trading using opposite Petro Usa and Symbotic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petro Usa position performs unexpectedly, Symbotic 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 Symbotic will offset losses from the drop in Symbotic's long position.

The idea behind Petro Usa and Symbotic pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.