Pair Correlation Between Petrobras Argentina and TOTAL S

This module allows you to analyze existing cross correlation between Petrobras Argentina S A and TOTAL S A. You can compare the effects of market volatilities on Petrobras Argentina and TOTAL S 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 TOTAL S. See also your portfolio center. Please also check ongoing floating volatility patterns of Petrobras Argentina and TOTAL S.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Petrobras Argentina S A  vs   TOTAL S A
 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Petrobras Argentina S A is expected to generate 3.78 times more return on investment than TOTAL S. However, Petrobras Argentina is 3.78 times more volatile than TOTAL S A. It trades about 0.24 of its potential returns per unit of risk. TOTAL S A is currently generating about 0.05 per unit of risk. If you would invest  1,067  in Petrobras Argentina S A on July 19, 2017 and sell it today you would earn a total of  167.00  from holding Petrobras Argentina S A or generate 15.65% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Petrobras Argentina and TOTAL S
-0.26

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Very good diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Petrobras Argentina S

  
16 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Petrobras Argentina S A are ranked lower than 16 (%) of all global equities and portfolios over the last 30 days.

TOTAL S A

  
3 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in TOTAL S A are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days.