Correlation Between ASA METROPOLIS and Btg Pactual
Can any of the company-specific risk be diversified away by investing in both ASA METROPOLIS and Btg Pactual 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 ASA METROPOLIS and Btg Pactual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASA METROPOLIS FUNDO and Btg Pactual Real, you can compare the effects of market volatilities on ASA METROPOLIS and Btg Pactual 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 ASA METROPOLIS with a short position of Btg Pactual. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASA METROPOLIS and Btg Pactual.
Diversification Opportunities for ASA METROPOLIS and Btg Pactual
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASA and Btg is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding ASA METROPOLIS FUNDO and Btg Pactual Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Btg Pactual Real and ASA METROPOLIS 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 ASA METROPOLIS FUNDO are associated (or correlated) with Btg Pactual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Btg Pactual Real has no effect on the direction of ASA METROPOLIS i.e., ASA METROPOLIS and Btg Pactual go up and down completely randomly.
Pair Corralation between ASA METROPOLIS and Btg Pactual
Assuming the 90 days trading horizon ASA METROPOLIS FUNDO is expected to generate 5.25 times more return on investment than Btg Pactual. However, ASA METROPOLIS is 5.25 times more volatile than Btg Pactual Real. It trades about -0.12 of its potential returns per unit of risk. Btg Pactual Real is currently generating about -0.7 per unit of risk. If you would invest 3,084 in ASA METROPOLIS FUNDO on October 23, 2024 and sell it today you would lose (327.00) from holding ASA METROPOLIS FUNDO or give up 10.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASA METROPOLIS FUNDO vs. Btg Pactual Real
Performance |
| Timeline |
| ASA METROPOLIS FUNDO |
| Btg Pactual Real |
ASA METROPOLIS and Btg Pactual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASA METROPOLIS and Btg Pactual
The main advantage of trading using opposite ASA METROPOLIS and Btg Pactual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASA METROPOLIS position performs unexpectedly, Btg Pactual 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 Btg Pactual will offset losses from the drop in Btg Pactual's long position.| ASA METROPOLIS vs. FDO INV IMOB | ASA METROPOLIS vs. FDO INV IMOB | ASA METROPOLIS vs. Energisa SA | ASA METROPOLIS vs. BTG Pactual Logstica |
| Btg Pactual vs. FDO INV IMOB | Btg Pactual vs. FDO INV IMOB | Btg Pactual vs. Energisa SA | Btg Pactual vs. BTG Pactual Logstica |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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