Implied volatility in TOT, SU, E, and PBR
Implied volatility in international integrated energy stocks has been mixed in 2Q17. Petrobras (PBR) saw a 9.5% rise in its implied volatility from April 3, 2017, to 48.1% on May 24, 2017.
However, Total (TOT), Suncor Energy (SU), and ENI (E) saw falling implied volatility readings. TOT, SU, and E saw drops of 1.0%, 1.9%, and 1.4%, respectively, in their implied volatility levels in 2Q17.
PBR had the highest beta
Regarding absolute levels, PBR’s implied volatility was the highest in the group, and it was the lowest in TOT. If you want global stocks in your portfolio, you can look at the Vanguard Total World Stock ETF (VT). This ETF has ~56% exposure to North American stocks and ~21% exposure to European stocks. VT also contains SU and TOT in its portfolio.
Move on to the next part to see how integrated energy stocks’ valuations are placed compared to historical averages.