Correlation Between Petroleo Brasileiro and Foxconn Industrial
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By analyzing existing cross correlation between Petroleo Brasileiro Petrobras and Foxconn Industrial Internet, you can compare the effects of market volatilities on Petroleo Brasileiro and Foxconn Industrial 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 Foxconn Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and Foxconn Industrial.
Diversification Opportunities for Petroleo Brasileiro and Foxconn Industrial
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Petroleo and Foxconn is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and Foxconn Industrial Internet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foxconn Industrial 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 Foxconn Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foxconn Industrial has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and Foxconn Industrial go up and down completely randomly.
Pair Corralation between Petroleo Brasileiro and Foxconn Industrial
Considering the 90-day investment horizon Petroleo Brasileiro Petrobras is expected to generate 0.71 times more return on investment than Foxconn Industrial. However, Petroleo Brasileiro Petrobras is 1.41 times less risky than Foxconn Industrial. It trades about 0.06 of its potential returns per unit of risk. Foxconn Industrial Internet is currently generating about -0.21 per unit of risk. If you would invest 1,324 in Petroleo Brasileiro Petrobras on October 13, 2024 and sell it today you would earn a total of 24.00 from holding Petroleo Brasileiro Petrobras or generate 1.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 86.36% |
Values | Daily Returns |
Petroleo Brasileiro Petrobras vs. Foxconn Industrial Internet
Performance |
Timeline |
Petroleo Brasileiro |
Foxconn Industrial |
Petroleo Brasileiro and Foxconn Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Petroleo Brasileiro and Foxconn Industrial
The main advantage of trading using opposite Petroleo Brasileiro and Foxconn Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, Foxconn Industrial 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 Foxconn Industrial will offset losses from the drop in Foxconn Industrial'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 |
Foxconn Industrial vs. Sportsoul Co Ltd | Foxconn Industrial vs. Guangzhou Restaurants Group | Foxconn Industrial vs. Haima Automobile Group | Foxconn Industrial vs. Dongfeng Automobile Co |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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