Correlation Between FIBRA Storage and Petrleo Brasileiro
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By analyzing existing cross correlation between FIBRA Storage and Petrleo Brasileiro SA, you can compare the effects of market volatilities on FIBRA Storage and Petrleo Brasileiro 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 FIBRA Storage with a short position of Petrleo Brasileiro. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIBRA Storage and Petrleo Brasileiro.
Diversification Opportunities for FIBRA Storage and Petrleo Brasileiro
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between FIBRA and Petrleo is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding FIBRA Storage and Petrleo Brasileiro SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petrleo Brasileiro and FIBRA Storage 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 FIBRA Storage are associated (or correlated) with Petrleo Brasileiro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petrleo Brasileiro has no effect on the direction of FIBRA Storage i.e., FIBRA Storage and Petrleo Brasileiro go up and down completely randomly.
Pair Corralation between FIBRA Storage and Petrleo Brasileiro
Assuming the 90 days trading horizon FIBRA Storage is expected to generate 0.23 times more return on investment than Petrleo Brasileiro. However, FIBRA Storage is 4.42 times less risky than Petrleo Brasileiro. It trades about 0.47 of its potential returns per unit of risk. Petrleo Brasileiro SA is currently generating about -0.14 per unit of risk. If you would invest 1,720 in FIBRA Storage on September 20, 2024 and sell it today you would earn a total of 79.00 from holding FIBRA Storage or generate 4.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
FIBRA Storage vs. Petrleo Brasileiro SA
Performance |
Timeline |
FIBRA Storage |
Petrleo Brasileiro |
FIBRA Storage and Petrleo Brasileiro Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FIBRA Storage and Petrleo Brasileiro
The main advantage of trading using opposite FIBRA Storage and Petrleo Brasileiro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIBRA Storage position performs unexpectedly, Petrleo Brasileiro 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 Petrleo Brasileiro will offset losses from the drop in Petrleo Brasileiro's long position.FIBRA Storage vs. Apple Inc | FIBRA Storage vs. Microsoft | FIBRA Storage vs. Alphabet Inc Class A | FIBRA Storage vs. Alphabet Inc |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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