This module allows you to analyze existing cross correlation between Petrobras Argentina SA and TOTAL SA. You can compare the effects of market volatilities on Petrobras Argentina and TOTAL SA 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 SA. See also your portfolio center
. Please also check ongoing floating volatility patterns of Petrobras Argentina
and TOTAL SA
Petrobras Argentina SA vs TOTAL S.A.
Considering 30-days investment horizon, Petrobras Argentina SA is expected to generate 1.72 times more return on investment than TOTAL SA. However, Petrobras Argentina is 1.72 times more volatile than TOTAL SA. It trades about 0.33 of its potential returns per unit of risk. TOTAL SA is currently generating about -0.13 per unit of risk. If you would invest 939.00 in Petrobras Argentina SA on February 23, 2017 and sell it today you would earn a total of 121.00 from holding Petrobras Argentina SA or generate 12.89% return on investment over 30 days.
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Very good diversification
Overlapping area represents the amount of risk that can be diversified away by holding Petrobras Argentina SA and TOTAL S.A. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on TOTAL SA 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 TOTAL SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOTAL SA has no effect on the direction of Petrobras Argentina i.e. Petrobras Argentina and TOTAL SA go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Petrobras Argentina SA are ranked lower than 22 (%) of all global equities and portfolios over the last 30 days.
Over the last 30 days TOTAL SA has generated negative risk-adjusted returns adding no value to investors with long positions.