Correlation Between Petroleo Brasileiro and Invesco QQQ

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Petroleo Brasileiro and Invesco QQQ 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 Petroleo Brasileiro and Invesco QQQ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Petroleo Brasileiro Petrobras and Invesco QQQ Trust, you can compare the effects of market volatilities on Petroleo Brasileiro and Invesco QQQ 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 Petroleo Brasileiro with a short position of Invesco QQQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petroleo Brasileiro and Invesco QQQ.

Diversification Opportunities for Petroleo Brasileiro and Invesco QQQ

0.05
  Correlation Coefficient

Significant diversification

The 3 months correlation between Petroleo and Invesco is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Petroleo Brasileiro Petrobras and Invesco QQQ Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco QQQ Trust and Petroleo Brasileiro 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 Petroleo Brasileiro Petrobras are associated (or correlated) with Invesco QQQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco QQQ Trust has no effect on the direction of Petroleo Brasileiro i.e., Petroleo Brasileiro and Invesco QQQ go up and down completely randomly.

Pair Corralation between Petroleo Brasileiro and Invesco QQQ

Considering the 90-day investment horizon Petroleo Brasileiro is expected to generate 3.14 times less return on investment than Invesco QQQ. In addition to that, Petroleo Brasileiro is 1.34 times more volatile than Invesco QQQ Trust. It trades about 0.03 of its total potential returns per unit of risk. Invesco QQQ Trust is currently generating about 0.14 per unit of volatility. If you would invest  27,511  in Invesco QQQ Trust on September 2, 2022 and sell it today you would earn a total of  1,825  from holding Invesco QQQ Trust or generate 6.63% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Petroleo Brasileiro Petrobras  vs.  Invesco QQQ Trust

 Performance (%) 
       Timeline  
Petroleo Brasileiro 
Petroleo Performance
0 of 100
Over the last 90 days Petroleo Brasileiro Petrobras has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental drivers, Petroleo Brasileiro is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Petroleo Price Channel

Invesco QQQ Trust 
Invesco Performance
0 of 100
Over the last 90 days Invesco QQQ Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Invesco QQQ is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the insiders.

Invesco Price Channel

Petroleo Brasileiro and Invesco QQQ Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Petroleo Brasileiro and Invesco QQQ

The main advantage of trading using opposite Petroleo Brasileiro and Invesco QQQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petroleo Brasileiro position performs unexpectedly, Invesco QQQ 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 Invesco QQQ will offset losses from the drop in Invesco QQQ's long position.
Petroleo Brasileiro vs. World Fuel Services
Petroleo Brasileiro vs. Par Pacific Holdings
Petroleo Brasileiro vs. HF Sinclair Corp
Petroleo Brasileiro vs. PBF Energy
The idea behind Petroleo Brasileiro Petrobras and Invesco QQQ Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Invesco QQQ vs. Verizon Communications
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

Other Complementary Tools

Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go