Correlation Between Petroleo Brasileiro and Bond Fund
Can any of the company-specific risk be diversified away by investing in both Petroleo Brasileiro and Bond Fund 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 Petroleo Brasileiro and Bond Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Petroleo Brasileiro Petrobras and Bond Fund Class, you can compare the effects of market volatilities on Petroleo Brasileiro and Bond Fund 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 Bond Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and Bond Fund.
Diversification Opportunities for Petroleo Brasileiro and Bond Fund
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Petroleo and Bond is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and Bond Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bond Fund Class 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 Bond Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bond Fund Class has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and Bond Fund go up and down completely randomly.
Pair Corralation between Petroleo Brasileiro and Bond Fund
Considering the 90-day investment horizon Petroleo Brasileiro Petrobras is expected to under-perform the Bond Fund. In addition to that, Petroleo Brasileiro is 5.65 times more volatile than Bond Fund Class. It trades about -0.21 of its total potential returns per unit of risk. Bond Fund Class is currently generating about 0.3 per unit of volatility. If you would invest 838.00 in Bond Fund Class on December 5, 2024 and sell it today you would earn a total of 19.00 from holding Bond Fund Class or generate 2.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Petroleo Brasileiro Petrobras vs. Bond Fund Class
Performance |
Timeline |
Petroleo Brasileiro |
Bond Fund Class |
Petroleo Brasileiro and Bond Fund Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Petroleo Brasileiro and Bond Fund
The main advantage of trading using opposite Petroleo Brasileiro and Bond Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, Bond Fund 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 Bond Fund will offset losses from the drop in Bond Fund'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 |
Bond Fund vs. Wells Fargo Advantage | Bond Fund vs. Invesco Gold Special | Bond Fund vs. Oppenheimer Gold Special | Bond Fund vs. Investment Managers Series |
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.
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