Petroleo Stock Volatility

PBR Stock  USD 10.00  0.23  2.35%   
Petroleo Brasileiro maintains Sharpe Ratio (i.e., Efficiency) of -0.0151, which implies the firm had -0.0151% of return per unit of risk over the last 3 months. Macroaxis standpoint towards forecasting the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Petroleo Brasileiro exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to check Petroleo Brasileiro Coefficient Of Variation of 1588.76, risk adjusted performance of 0.0676, and Semi Deviation of 2.71 to confirm the risk estimate we provide.
Petroleo Brasileiro Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Petroleo daily returns, and it is calculated using variance and standard deviation. We also use Petroleo's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Petroleo Brasileiro volatility.

330 Days Market Risk

Not too volatile

Chance of Distress

Close to Average

330 Days Economic Sensitivity

Follows the market closely
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Petroleo Brasileiro can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Petroleo Brasileiro at lower prices. For example, an investor can purchase Petroleo stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Petroleo Brasileiro's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

Moving together with Petroleo Brasileiro

+0.65EEni SpA ADR Fiscal Quarter End 31st of March 2023 PairCorr
+0.74ECEcopetrol SA ADR Financial Report 11th of May 2023 PairCorr
+0.81IMOImperial Oil Fiscal Quarter End 31st of March 2023 PairCorr

Petroleo Brasileiro Market Sensitivity And Downside Risk

Petroleo Brasileiro's beta coefficient measures the volatility of Petroleo stock compared to the systematic risk of the entire stock market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Petroleo stock's returns against your selected market. In other words, Petroleo Brasileiro's beta of 0.8 provides an investor with an approximation of how much risk Petroleo Brasileiro stock can potentially add to one of your existing portfolios.
Petroleo Brasileiro Petrobras currently demonstrates below-average downside deviation. It has Information Ratio of 0.08 and Jensen Alpha of 0.21. However, we advise investors to further question Petroleo Brasileiro Petrobras expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Petroleo Brasileiro's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Petroleo Brasileiro's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
3 Months Beta |Analyze Petroleo Brasileiro Demand Trend
Check current 90 days Petroleo Brasileiro correlation with market (NYSE Composite)

Petroleo Beta

Petroleo standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

It is essential to understand the difference between upside risk (as represented by Petroleo Brasileiro's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Petroleo Brasileiro's daily returns or price. Since the actual investment returns on holding a position in petroleo stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Petroleo Brasileiro.

Using Petroleo Put Option to Manage Risk

Put options written on Petroleo Brasileiro grant holders of the option the right to sell a specified amount of Petroleo Brasileiro at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Petroleo Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Petroleo Brasileiro's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Petroleo Brasileiro will be realized, the loss incurred will be offset by the profits made with the option trade.

Petroleo Brasileiro's PUT expiring on 2023-03-24

       Petroleo Brasileiro Price At Expiration  

Current Petroleo Brasileiro Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
2023-03-24 PUT at $12.0-0.92150.115742023-03-241.94 - 2.062.1View
2023-03-24 PUT at $11.5-0.99710.00431542023-03-241.47 - 1.521.46View
2023-03-24 PUT at $11.0-0.95380.16522482023-03-240.97 - 1.020.95View
2023-03-24 PUT at $10.5-0.89280.45438572023-03-240.5 - 0.540.47View
2023-03-24 PUT at $10.0-0.51120.993412972023-03-240.14 - 0.170.17View
2023-03-24 PUT at $9.5-0.15250.478118222023-03-240.03 - 0.040.04View
2023-03-24 PUT at $9.0-0.06420.18021512023-03-240.01 - 0.020.02View
View All Petroleo Brasileiro Options

Petroleo Brasileiro Stock Volatility Analysis

Volatility refers to the frequency at which Petroleo Brasileiro stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Petroleo Brasileiro's price changes. Investors will then calculate the volatility of Petroleo Brasileiro's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Petroleo Brasileiro's volatility:

Historical Volatility

This type of stock volatility measures Petroleo Brasileiro's fluctuations based on previous trends. It's commonly used to predict Petroleo Brasileiro's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Petroleo Brasileiro's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Petroleo Brasileiro's to be redeemed at a future date.
The output start index for this execution was zero with a total number of output elements of sixty-one. Petroleo Brasileiro Typical Price indicator is an average of each day price and can be used instead of closing price when creating different Petroleo Brasileiro moving average lines.

Petroleo Brasileiro Projected Return Density Against Market

Considering the 90-day investment horizon Petroleo Brasileiro has a beta of 0.8003 indicating as returns on the market go up, Petroleo Brasileiro average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Petroleo Brasileiro Petrobras will be expected to be much smaller as well.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Petroleo Brasileiro or Oil, Gas & Consumable Fuels sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Petroleo Brasileiro's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Petroleo stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
The company has an alpha of 0.2097, implying that it can generate a 0.21 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
Petroleo Brasileiro's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how petroleo stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Petroleo Brasileiro Price Volatility?

Several factors can influence a stock's market volatility:


Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Petroleo Brasileiro Stock Risk Measures

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Petroleo Brasileiro or Oil, Gas & Consumable Fuels sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Petroleo Brasileiro's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Petroleo stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision. Considering the 90-day investment horizon the coefficient of variation of Petroleo Brasileiro is -6632.96. The daily returns are distributed with a variance of 7.83 and standard deviation of 2.8. The mean deviation of Petroleo Brasileiro Petrobras is currently at 2.13. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.97
Alpha over NYSE Composite
Beta against NYSE Composite0.80
Overall volatility
Information ratio 0.08

Petroleo Brasileiro Stock Return Volatility

Petroleo Brasileiro historical daily return volatility represents how much of Petroleo Brasileiro stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The enterprise has volatility of 2.7981% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.9454% volatility on return distribution over the 90 days horizon.
 Performance (%) 

About Petroleo Brasileiro Volatility

Volatility is a rate at which the price of Petroleo Brasileiro or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Petroleo Brasileiro may increase or decrease. In other words, similar to Petroleo's beta indicator, it measures the risk of Petroleo Brasileiro and helps estimate the fluctuations that may happen in a short period of time. So if prices of Petroleo Brasileiro fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
Last ReportedProjected for 2023
Market Capitalization64.5 B67.7 B
Petroleo Brasileiro's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Petroleo Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Petroleo Brasileiro's price varies over time.

3 ways to utilize Petroleo Brasileiro's volatility to invest better

Higher Petroleo Brasileiro's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Petroleo Brasileiro stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Petroleo Brasileiro stock volatility can provide helpful information for making investment decisions in the following ways:
  • Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Petroleo Brasileiro investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Petroleo Brasileiro's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
  • Diversification: Understanding how the volatility of Petroleo Brasileiro's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Petroleo Brasileiro Investment Opportunity

Petroleo Brasileiro Petrobras has a volatility of 2.8 and is 2.95 times more volatile than NYSE Composite. 24  of all equities and portfolios are less risky than Petroleo Brasileiro. Compared to the overall equity markets, volatility of historical daily returns of Petroleo Brasileiro Petrobras is lower than 24 () of all global equities and portfolios over the last 90 days. Use Petroleo Brasileiro Petrobras to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Petroleo Brasileiro to be traded at $12.0 in 90 days.

Modest diversification

The correlation between Petroleo Brasileiro Petrobras and NYA is 0.28 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and NYA in the same portfolio, assuming nothing else is changed.

Petroleo Brasileiro Additional Risk Indicators

The analysis of Petroleo Brasileiro's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Petroleo Brasileiro's investment and either accepting that risk or mitigating it. Along with some common measures of Petroleo Brasileiro stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Petroleo Brasileiro Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Petroleo Brasileiro as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Petroleo Brasileiro's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Petroleo Brasileiro's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Petroleo Brasileiro Petrobras.
Please check Your Equity Center. Note that the Petroleo Brasileiro information on this page should be used as a complementary analysis to other Petroleo Brasileiro's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.

Complementary Tools for Petroleo Stock analysis

When running Petroleo Brasileiro price analysis, check to measure Petroleo Brasileiro's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Petroleo Brasileiro is operating at the current time. Most of Petroleo Brasileiro's value examination focuses on studying past and present price action to predict the probability of Petroleo Brasileiro's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Petroleo Brasileiro's price. Additionally, you may evaluate how the addition of Petroleo Brasileiro to your portfolios can decrease your overall portfolio volatility.
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Equity Valuation
Check real value of public entities based on technical and fundamental data
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Transaction History
View history of all your transactions and understand their impact on performance
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Is Petroleo Brasileiro's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Petroleo Brasileiro. If investors know Petroleo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Petroleo Brasileiro listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
Dividend Share
Earnings Share
Revenue Per Share
Quarterly Revenue Growth
The market value of Petroleo Brasileiro is measured differently than its book value, which is the value of Petroleo that is recorded on the company's balance sheet. Investors also form their own opinion of Petroleo Brasileiro's value that differs from its market value or its book value, called intrinsic value, which is Petroleo Brasileiro's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Petroleo Brasileiro's market value can be influenced by many factors that don't directly affect Petroleo Brasileiro's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Petroleo Brasileiro's value and its price as these two are different measures arrived at by different means. Investors typically determine Petroleo Brasileiro value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Petroleo Brasileiro's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.