Correlation Between ATMA Participaes and Banco BTG
Can any of the company-specific risk be diversified away by investing in both ATMA Participaes and Banco BTG 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 ATMA Participaes and Banco BTG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATMA Participaes SA and Banco BTG Pactual, you can compare the effects of market volatilities on ATMA Participaes and Banco BTG 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 ATMA Participaes with a short position of Banco BTG. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATMA Participaes and Banco BTG.
Diversification Opportunities for ATMA Participaes and Banco BTG
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between ATMA and Banco is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding ATMA Participaes SA and Banco BTG Pactual in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco BTG Pactual and ATMA Participaes 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 ATMA Participaes SA are associated (or correlated) with Banco BTG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco BTG Pactual has no effect on the direction of ATMA Participaes i.e., ATMA Participaes and Banco BTG go up and down completely randomly.
Pair Corralation between ATMA Participaes and Banco BTG
Assuming the 90 days trading horizon ATMA Participaes SA is expected to generate 0.81 times more return on investment than Banco BTG. However, ATMA Participaes SA is 1.23 times less risky than Banco BTG. It trades about -0.13 of its potential returns per unit of risk. Banco BTG Pactual is currently generating about -0.15 per unit of risk. If you would invest 136.00 in ATMA Participaes SA on September 1, 2024 and sell it today you would lose (7.00) from holding ATMA Participaes SA or give up 5.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
ATMA Participaes SA vs. Banco BTG Pactual
Performance |
| Timeline |
| ATMA Participaes |
| Banco BTG Pactual |
ATMA Participaes and Banco BTG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATMA Participaes and Banco BTG
The main advantage of trading using opposite ATMA Participaes and Banco BTG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATMA Participaes position performs unexpectedly, Banco BTG 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 Banco BTG will offset losses from the drop in Banco BTG's long position.| ATMA Participaes vs. Mliuz SA | ATMA Participaes vs. Lojas Quero Quero SA | ATMA Participaes vs. GPS Participaes e | ATMA Participaes vs. Grupo SBF SA |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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