Correlation Between Petroleo Brasileiro and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Petroleo Brasileiro and Mainstay Epoch 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 Mainstay Epoch 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 Mainstay Epoch Global, you can compare the effects of market volatilities on Petroleo Brasileiro and Mainstay Epoch 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 Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and Mainstay Epoch.
Diversification Opportunities for Petroleo Brasileiro and Mainstay Epoch
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Petroleo and Mainstay is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and Mainstay Epoch Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Global 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 Mainstay Epoch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Epoch Global has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Petroleo Brasileiro and Mainstay Epoch
Considering the 90-day investment horizon Petroleo Brasileiro Petrobras is expected to under-perform the Mainstay Epoch. In addition to that, Petroleo Brasileiro is 2.14 times more volatile than Mainstay Epoch Global. It trades about -0.04 of its total potential returns per unit of risk. Mainstay Epoch Global is currently generating about 0.02 per unit of volatility. If you would invest 2,152 in Mainstay Epoch Global on September 24, 2024 and sell it today you would earn a total of 42.00 from holding Mainstay Epoch Global or generate 1.95% 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. Mainstay Epoch Global
Performance |
Timeline |
Petroleo Brasileiro |
Mainstay Epoch Global |
Petroleo Brasileiro and Mainstay Epoch Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Petroleo Brasileiro and Mainstay Epoch
The main advantage of trading using opposite Petroleo Brasileiro and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, Mainstay Epoch 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 Mainstay Epoch will offset losses from the drop in Mainstay Epoch'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 |
Mainstay Epoch vs. Mainstay High Yield | Mainstay Epoch vs. Mainstay Tax Free | Mainstay Epoch vs. Mainstay Income Builder | Mainstay Epoch vs. Mainstay Large Cap |
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.
Other Complementary Tools
Commodity Directory Find actively traded commodities issued by global exchanges | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |