Correlation Between Petroleo Brasileiro and Tsinghuatongfang
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By analyzing existing cross correlation between Petroleo Brasileiro Petrobras and Tsinghuatongfang Co, you can compare the effects of market volatilities on Petroleo Brasileiro and Tsinghuatongfang 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 Tsinghuatongfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and Tsinghuatongfang.
Diversification Opportunities for Petroleo Brasileiro and Tsinghuatongfang
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Petroleo and Tsinghuatongfang is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and Tsinghuatongfang Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsinghuatongfang 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 Tsinghuatongfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tsinghuatongfang has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and Tsinghuatongfang go up and down completely randomly.
Pair Corralation between Petroleo Brasileiro and Tsinghuatongfang
Considering the 90-day investment horizon Petroleo Brasileiro is expected to generate 1.0 times less return on investment than Tsinghuatongfang. But when comparing it to its historical volatility, Petroleo Brasileiro Petrobras is 1.54 times less risky than Tsinghuatongfang. It trades about 0.08 of its potential returns per unit of risk. Tsinghuatongfang Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 442.00 in Tsinghuatongfang Co on September 24, 2024 and sell it today you would earn a total of 322.00 from holding Tsinghuatongfang Co or generate 72.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 96.18% |
Values | Daily Returns |
Petroleo Brasileiro Petrobras vs. Tsinghuatongfang Co
Performance |
Timeline |
Petroleo Brasileiro |
Tsinghuatongfang |
Petroleo Brasileiro and Tsinghuatongfang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Petroleo Brasileiro and Tsinghuatongfang
The main advantage of trading using opposite Petroleo Brasileiro and Tsinghuatongfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, Tsinghuatongfang 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 Tsinghuatongfang will offset losses from the drop in Tsinghuatongfang'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 |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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