Correlation Between Petroleo Brasileiro and SICC
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By analyzing existing cross correlation between Petroleo Brasileiro Petrobras and SICC Co, you can compare the effects of market volatilities on Petroleo Brasileiro and SICC 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 SICC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and SICC.
Diversification Opportunities for Petroleo Brasileiro and SICC
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Petroleo and SICC is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and SICC Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SICC 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 SICC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SICC has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and SICC go up and down completely randomly.
Pair Corralation between Petroleo Brasileiro and SICC
Considering the 90-day investment horizon Petroleo Brasileiro Petrobras is expected to generate 0.55 times more return on investment than SICC. However, Petroleo Brasileiro Petrobras is 1.83 times less risky than SICC. It trades about 0.01 of its potential returns per unit of risk. SICC Co is currently generating about 0.0 per unit of risk. If you would invest 1,250 in Petroleo Brasileiro Petrobras on October 1, 2024 and sell it today you would earn a total of 11.00 from holding Petroleo Brasileiro Petrobras or generate 0.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 97.23% |
Values | Daily Returns |
Petroleo Brasileiro Petrobras vs. SICC Co
Performance |
Timeline |
Petroleo Brasileiro |
SICC |
Petroleo Brasileiro and SICC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Petroleo Brasileiro and SICC
The main advantage of trading using opposite Petroleo Brasileiro and SICC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, SICC 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 SICC will offset losses from the drop in SICC'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 |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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