Correlation Between Barclays PLC and BTG Pactual
Can any of the company-specific risk be diversified away by investing in both Barclays PLC 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 Barclays PLC and BTG Pactual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays PLC and BTG Pactual Logstica, you can compare the effects of market volatilities on Barclays PLC 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 Barclays PLC with a short position of BTG Pactual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays PLC and BTG Pactual.
Diversification Opportunities for Barclays PLC and BTG Pactual
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barclays and BTG is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Barclays PLC and BTG Pactual Logstica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTG Pactual Logstica and Barclays PLC 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 Barclays PLC 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 Logstica has no effect on the direction of Barclays PLC i.e., Barclays PLC and BTG Pactual go up and down completely randomly.
Pair Corralation between Barclays PLC and BTG Pactual
Assuming the 90 days trading horizon Barclays PLC is expected to generate 1.42 times more return on investment than BTG Pactual. However, Barclays PLC is 1.42 times more volatile than BTG Pactual Logstica. It trades about 0.19 of its potential returns per unit of risk. BTG Pactual Logstica is currently generating about -0.12 per unit of risk. If you would invest 7,190 in Barclays PLC on September 19, 2024 and sell it today you would earn a total of 1,114 from holding Barclays PLC or generate 15.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 97.5% |
Values | Daily Returns |
Barclays PLC vs. BTG Pactual Logstica
Performance |
Timeline |
Barclays PLC |
BTG Pactual Logstica |
Barclays PLC and BTG Pactual Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Barclays PLC and BTG Pactual
The main advantage of trading using opposite Barclays PLC and BTG Pactual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays PLC 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.Barclays PLC vs. HSBC Holdings plc | Barclays PLC vs. Wells Fargo | Barclays PLC vs. BTG Pactual Logstica | Barclays PLC vs. Plano Plano Desenvolvimento |
BTG Pactual vs. Plano Plano Desenvolvimento | BTG Pactual vs. Cable One | BTG Pactual vs. ATMA Participaes SA | BTG Pactual vs. British American Tobacco |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum |