Correlation Between Petroleo Brasileiro and SIMON
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By analyzing existing cross correlation between Petroleo Brasileiro Petrobras and SIMON PPTY GROUP, you can compare the effects of market volatilities on Petroleo Brasileiro and SIMON 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 SIMON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and SIMON.
Diversification Opportunities for Petroleo Brasileiro and SIMON
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Petroleo and SIMON is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and SIMON PPTY GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIMON PPTY GROUP 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 SIMON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIMON PPTY GROUP has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and SIMON go up and down completely randomly.
Pair Corralation between Petroleo Brasileiro and SIMON
Considering the 90-day investment horizon Petroleo Brasileiro Petrobras is expected to generate 2.72 times more return on investment than SIMON. However, Petroleo Brasileiro is 2.72 times more volatile than SIMON PPTY GROUP. It trades about 0.12 of its potential returns per unit of risk. SIMON PPTY GROUP is currently generating about 0.04 per unit of risk. If you would invest 1,275 in Petroleo Brasileiro Petrobras on December 30, 2024 and sell it today you would earn a total of 163.00 from holding Petroleo Brasileiro Petrobras or generate 12.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 82.26% |
Values | Daily Returns |
Petroleo Brasileiro Petrobras vs. SIMON PPTY GROUP
Performance |
Timeline |
Petroleo Brasileiro |
SIMON PPTY GROUP |
Petroleo Brasileiro and SIMON Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Petroleo Brasileiro and SIMON
The main advantage of trading using opposite Petroleo Brasileiro and SIMON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, SIMON 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 SIMON will offset losses from the drop in SIMON's 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 |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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