Correlation Between Symbotic and Petro Usa

Can any of the company-specific risk be diversified away by investing in both Symbotic and Petro Usa 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 Symbotic and Petro Usa into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Symbotic and Petro Usa, you can compare the effects of market volatilities on Symbotic and Petro Usa 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 Symbotic with a short position of Petro Usa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symbotic and Petro Usa.

Diversification Opportunities for Symbotic and Petro Usa

0.0

Correlation Coefficient

Symbotic  Petro Usa

Pay attention - limited upside

The 3 months correlation between Symbotic and Petro is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Symbotic and Petro Usa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petro Usa and Symbotic 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 Symbotic are associated (or correlated) with Petro Usa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petro Usa has no effect on the direction of Symbotic i.e., Symbotic and Petro Usa go up and down completely randomly.

Pair Corralation between Symbotic and Petro Usa

Considering the 90-day investment horizon Symbotic is expected to generate 15.17 times less return on investment than Petro Usa. But when comparing it to its historical volatility, Symbotic is 9.54 times less risky than Petro Usa. It trades about 0.05 of its potential returns per unit of risk. Petro Usa is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  800.00  in Petro Usa on October 5, 2024 and sell it today you would lose (300.00) from holding Petro Usa or give up 37.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.78%
Values	Daily Returns

Symbotic  vs.  Petro Usa

Symbotic

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Symbotic are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Symbotic displayed solid returns over the last few months and may actually be approaching a breakup point.

Petro Usa

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Petro Usa has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively steady basic indicators, Petro Usa is not utilizing all of its potentials. The latest stock price chaos, may contribute to medium-term losses for the stakeholders.

Pair Trading with Symbotic and Petro Usa

The main advantage of trading using opposite Symbotic and Petro Usa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symbotic position performs unexpectedly, Petro Usa 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 Petro Usa will offset losses from the drop in Petro Usa's long position.

The idea behind Symbotic and Petro Usa pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.