Correlation Between Petrobras Argentina and PetroChina
Can any of the company-specific risk be diversified away by investing in both Petrobras Argentina and PetroChina 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 Petrobras Argentina and PetroChina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Petrobras Argentina SA and PetroChina Co, you can compare the effects of market volatilities on Petrobras Argentina and PetroChina 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 Petrobras Argentina with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petrobras Argentina and PetroChina.
Diversification Opportunities for Petrobras Argentina and PetroChina
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Petrobras and PetroChina is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Petrobras Argentina SA and PetroChina Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Petrobras Argentina 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 Petrobras Argentina SA are associated (or correlated) with PetroChina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PetroChina has no effect on the direction of Petrobras Argentina i.e., Petrobras Argentina and PetroChina go up and down completely randomly.
Pair Corralation between Petrobras Argentina and PetroChina
If you would invest (100.00) in PetroChina Co on January 26, 2024 and sell it today you would earn a total of 100.00 from holding PetroChina Co or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Petrobras Argentina SA vs. PetroChina Co
Performance |
| Timeline |
| Petrobras Argentina |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| PetroChina |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Petrobras Argentina and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petrobras Argentina and PetroChina
The main advantage of trading using opposite Petrobras Argentina and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petrobras Argentina position performs unexpectedly, PetroChina 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 PetroChina will offset losses from the drop in PetroChina's long position.| Petrobras Argentina vs. Molecular Partners AG | Petrobras Argentina vs. SunLink Health Systems | Petrobras Argentina vs. Teleflex Incorporated | Petrobras Argentina vs. Ralph Lauren Corp |
| PetroChina vs. China Aircraft Leasing | PetroChina vs. U Haul Holding | PetroChina vs. Loandepot | PetroChina vs. Teleflex Incorporated |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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