Correlation Between Petroleo Brasileiro and Evaxion Biotech

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Petroleo Brasileiro and Evaxion Biotech 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 Evaxion Biotech 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 Evaxion Biotech AS, you can compare the effects of market volatilities on Petroleo Brasileiro and Evaxion Biotech 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 Evaxion Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and Evaxion Biotech.

Diversification Opportunities for Petroleo Brasileiro and Evaxion Biotech

0.14
  Correlation Coefficient

Average diversification

The 3 months correlation between Petroleo and Evaxion is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and Evaxion Biotech AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evaxion Biotech AS 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 Evaxion Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evaxion Biotech AS has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and Evaxion Biotech go up and down completely randomly.

Pair Corralation between Petroleo Brasileiro and Evaxion Biotech

Considering the 90-day investment horizon Petroleo Brasileiro Petrobras is expected to generate 0.25 times more return on investment than Evaxion Biotech. However, Petroleo Brasileiro Petrobras is 4.01 times less risky than Evaxion Biotech. It trades about 0.07 of its potential returns per unit of risk. Evaxion Biotech AS is currently generating about -0.03 per unit of risk. If you would invest  762.00  in Petroleo Brasileiro Petrobras on September 14, 2024 and sell it today you would earn a total of  599.00  from holding Petroleo Brasileiro Petrobras or generate 78.61% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Petroleo Brasileiro Petrobras  vs.  Evaxion Biotech AS

 Performance 
       Timeline  
Petroleo Brasileiro 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Petroleo Brasileiro Petrobras has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental drivers, Petroleo Brasileiro is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.
Evaxion Biotech AS 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Evaxion Biotech AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Petroleo Brasileiro and Evaxion Biotech Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Petroleo Brasileiro and Evaxion Biotech

The main advantage of trading using opposite Petroleo Brasileiro and Evaxion Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, Evaxion Biotech 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 Evaxion Biotech will offset losses from the drop in Evaxion Biotech's long position.
The idea behind Petroleo Brasileiro Petrobras and Evaxion Biotech AS 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

Other Complementary Tools

Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Bonds Directory
Find actively traded corporate debentures issued by US companies