Energy · Oil & Gas Integrated · Completed evidence
PBR-A relative to PBR
Petróleo Brasileiro S.A. - Petrobras is the relatively depressed leg. Petroleo Brasileiro Petrobras SA ADR is the relatively extended leg.
Specific pair strategy
What is the play in PBR-A / PBR?
This is a relative trade. The result depends on which security performs better, not on whether the whole market rises or falls.
No active pair setup
Keep PBR-A / PBR on routine watch
The two securities are not far enough apart, with enough confirmation, to support a useful convergence case.
This is the relatively depressed leg. The case needs it to recover or at least hold up better than the other leg.
This is the relatively extended leg. The case needs it to lag or weaken relative to the long leg.
A favourable relative move means PBR-A rises more than PBR, falls less than PBR, or rises while PBR falls. If PBR outperforms PBR-A, the pair moves against the case.
A future case would need an unusual separation, a dependable relationship and evidence favouring PBR-A over PBR.
There is no reason to force a long or short leg while the relationship remains near normal.
There is no active case to invalidate because no relative-value position is currently supported.
Keep the pair on the relationship map and wait for a meaningful, evidence-backed separation.
Evidence now
- PBR-A Market Dynamics is improving.
What would invalidate it?
There is no current dislocation edge; transaction costs can dominate small spread movements.
Possible setup paths
How the relative-value idea could be expressed
These are research structures, not recommendations or position-size instructions. The current course above determines whether any structure is ready to study now.
Long PBR-A / short PBR
Treat both legs as one relative position. The setup looks for PBR-A to outperform PBR; PBR-A can rise faster, fall less, or rise while PBR falls. The pair loses ground when PBR outperforms PBR-A.
When it becomes relevantThis is a structure to study only after the current course changes from “No setup at present” to confirmed convergence. A new, unusual separation would need to develop while the historical relationship remains dependable.Principal riskRequires a live review of both legs, borrow availability and cost, event dates, liquidity and the research normalisation.Study PBR-A alone if its own evidence confirms
This simpler expression focuses on recovery in PBR-A. It avoids short-borrow mechanics, but it no longer isolates relative value: the result is exposed to the broad market, the sector and PBR-A-specific news.
When it becomes relevantA stronger case needs improving PBR-A price structure and supporting evidence, not just a wide relationship gap.Principal riskCarries full single-security and broad-market direction risk.Study PBR alone if its support continues to weaken
This expression focuses on weakness in PBR. It may fit a leader-rollover case, but it also abandons the relative hedge and adds direct market direction, squeeze and company-event risk.
When it becomes relevantWeakening in PBR must be visible in its own completed evidence; relative extension alone is not enough.Principal riskShort selling can involve unlimited loss, borrow fees, recalls and forced close-outs.Any practical expression needs an independent review of suitability, portfolio risk, liquidity, current news and earnings, borrow availability and cost, transaction costs and tax.
Relationship gap · technical name: standardised residual
How far apart are they compared with normal?
Zero is the pair's historical centre. The outer guides show increasingly unusual departures from it.
This is the relationship gap after allowing for the pair's usual co-movement. Zero is its historical centre; the distance is measured in standard deviations, so different pairs can be compared on the same scale.
The latest gap is 0.66 standard deviations from normal. PBR-A is the relatively depressed leg and PBR is the relatively extended leg. That is unusual separation, not proof that either security is cheap or expensive.
A move toward zero means convergence. A move farther from zero means the separation is extending and raises the risk that the old relationship is changing.
Common-base price paths
Which security created the gap?
Both paths begin at 100 so their relative movement is visible without mixing different share prices.
Both securities are reset to 100 at the first date. This removes the distraction of different share prices and shows how their completed weekly price paths diverged. It is not a valuation chart.
Since the common starting point, PBR is +57.9% and PBR-A is +57.5%. The chart shows which price path contributed to the separation; the fitted relationship measure is more precise than the raw visual distance.
For convergence, watch for PBR-A to catch up, PBR to lose ground, or both. The relationship can close even if both securities rise or both fall.
PBRPBR-A
Completed daily timing
Is the gap closing yet?
The daily relationship adds timing context inside the slower weekly case. It does not replace the weekly validity checks.
This applies the same relationship to completed daily bars. It is the timing layer inside the weekly case, not a separate trading signal.
Gap stable: The completed daily gap is broadly unchanged. There is no clear short-term turn yet.
A sustained move toward zero would add confirmation; continued flat action keeps the case on watch.
PBR-A · Petróleo Brasileiro S.A. - Petrobras
61/100 evidence score- Market Dynamics
- -0.761 · change 0.409
- Trend
- Positive
- Stage
- Stage 2 · Advancing
- Smart Money
- Neutral
- News sentiment
- Neutral
- Options
- Not Available
PBR · Petroleo Brasileiro Petrobras SA ADR
68/100 evidence score- Market Dynamics
- -0.541 · change 0.472
- Trend
- Positive
- Stage
- Stage 2 · Advancing
- Smart Money
- Neutral
- Short interest
- Neutral
- Options
- Bullish
Relationship diagnostics
Why this pair is on the map
How closely completed weekly returns moved together across the measurement window.
How consistent the fitted relationship remained across earlier and later parts of the sample.
An observed mean-reversion clock, not a deadline or a forecast.
How often the residual crossed its historical centre; repeated crossings matter more than a single fit.
The latest residual's location inside its own completed history.
Stored price, volume and size context only. It does not include a live short locate or cost.
1 of 2 non-overlapping historical separations resolved after the relationship was fitted on earlier data.
Median time to return near the earlier fitted centre among the held-out cases that resolved.
The largest further move recorded after a measured held-out separation, before resolution or the observation window ended.
State history
What changed and when
Daily timing changed
Completed daily timing changed to gap stable through 2026-08-20.
Daily timing changed
Completed daily timing changed to gap narrowing through 2026-08-18.
Daily timing changed
Completed daily timing changed to gap extending through 2026-08-17.
Relationship discovered
Published as Balanced relationship after the completed 2026-08-14 observation.
Same-industry map