Correlation Between Astar and Btg Pactual
Can any of the company-specific risk be diversified away by investing in both Astar 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 Astar and Btg Pactual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astar and Btg Pactual Real, you can compare the effects of market volatilities on Astar 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 Astar with a short position of Btg Pactual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astar and Btg Pactual.
Diversification Opportunities for Astar and Btg Pactual
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Astar and Btg is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Astar 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 Astar 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 Astar 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 Astar i.e., Astar and Btg Pactual go up and down completely randomly.
Pair Corralation between Astar and Btg Pactual
Assuming the 90 days trading horizon Astar is expected to under-perform the Btg Pactual. In addition to that, Astar is 4.79 times more volatile than Btg Pactual Real. It trades about -0.19 of its total potential returns per unit of risk. Btg Pactual Real is currently generating about -0.87 per unit of volatility. If you would invest 775.00 in Btg Pactual Real on October 28, 2024 and sell it today you would lose (114.00) from holding Btg Pactual Real or give up 14.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Astar vs. Btg Pactual Real
Performance |
| Timeline |
| Astar |
| Btg Pactual Real |
Astar and Btg Pactual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astar and Btg Pactual
The main advantage of trading using opposite Astar and Btg Pactual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astar 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.The idea behind Astar and Btg Pactual Real 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.| Btg Pactual vs. BTG Pactual Logstica | Btg Pactual vs. Fundo Investimento Imobiliario | Btg Pactual vs. KILIMA VOLKANO RECEBVEIS | Btg Pactual vs. DEVANT PROPERTIES FUNDO |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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