Correlation Between Petroleo Brasileiro and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Petroleo Brasileiro and Cohen Steers 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 Cohen Steers 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 Cohen Steers Real, you can compare the effects of market volatilities on Petroleo Brasileiro and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and Cohen Steers.
Diversification Opportunities for Petroleo Brasileiro and Cohen Steers
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Petroleo and Cohen is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and Cohen Steers Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Real 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Real has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and Cohen Steers go up and down completely randomly.
Pair Corralation between Petroleo Brasileiro and Cohen Steers
Considering the 90-day investment horizon Petroleo Brasileiro Petrobras is expected to generate 1.57 times more return on investment than Cohen Steers. However, Petroleo Brasileiro is 1.57 times more volatile than Cohen Steers Real. It trades about 0.13 of its potential returns per unit of risk. Cohen Steers Real is currently generating about 0.06 per unit of risk. If you would invest 1,275 in Petroleo Brasileiro Petrobras on December 28, 2024 and sell it today you would earn a total of 164.00 from holding Petroleo Brasileiro Petrobras or generate 12.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Petroleo Brasileiro Petrobras vs. Cohen Steers Real
Performance |
Timeline |
Petroleo Brasileiro |
Cohen Steers Real |
Petroleo Brasileiro and Cohen Steers Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Petroleo Brasileiro and Cohen Steers
The main advantage of trading using opposite Petroleo Brasileiro and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.Petroleo Brasileiro vs. BP PLC ADR | Petroleo Brasileiro vs. Shell PLC ADR | Petroleo Brasileiro vs. Suncor Energy | Petroleo Brasileiro vs. Petrleo Brasileiro SA |
Cohen Steers vs. The Hartford Municipal | Cohen Steers vs. Morgan Stanley Government | Cohen Steers vs. Old Westbury California | Cohen Steers vs. Ab Impact Municipal |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
CEOs Directory Screen CEOs from public companies around the world | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories |