Correlation Between Petrobras Argentina and Exxon
Can any of the company-specific risk be diversified away by investing in both Petrobras Argentina and Exxon 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 Exxon 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 Exxon Mobil Corp, you can compare the effects of market volatilities on Petrobras Argentina and Exxon 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 Exxon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petrobras Argentina and Exxon.
Diversification Opportunities for Petrobras Argentina and Exxon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Petrobras and Exxon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Petrobras Argentina SA and Exxon Mobil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exxon Mobil Corp 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 Exxon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exxon Mobil Corp has no effect on the direction of Petrobras Argentina i.e., Petrobras Argentina and Exxon go up and down completely randomly.
Pair Corralation between Petrobras Argentina and Exxon
If you would invest 11,465 in Exxon Mobil Corp on January 24, 2024 and sell it today you would earn a total of 638.00 from holding Exxon Mobil Corp or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Petrobras Argentina SA vs. Exxon Mobil Corp
Performance |
| Timeline |
| Petrobras Argentina |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Exxon Mobil Corp |
Petrobras Argentina and Exxon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petrobras Argentina and Exxon
The main advantage of trading using opposite Petrobras Argentina and Exxon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petrobras Argentina position performs unexpectedly, Exxon 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 Exxon will offset losses from the drop in Exxon's long position.| Petrobras Argentina vs. Gulf Resources | Petrobras Argentina vs. SL Green Realty | Petrobras Argentina vs. Sensient Technologies | Petrobras Argentina vs. CVR Partners LP |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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