Correlation Between Btg Pactual and ASA METROPOLIS
Can any of the company-specific risk be diversified away by investing in both Btg Pactual and ASA METROPOLIS 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 Btg Pactual and ASA METROPOLIS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Btg Pactual Real and ASA METROPOLIS FUNDO, you can compare the effects of market volatilities on Btg Pactual and ASA METROPOLIS 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 Btg Pactual with a short position of ASA METROPOLIS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Btg Pactual and ASA METROPOLIS.
Diversification Opportunities for Btg Pactual and ASA METROPOLIS
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Btg and ASA is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Btg Pactual Real and ASA METROPOLIS FUNDO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASA METROPOLIS FUNDO and Btg Pactual 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 Btg Pactual Real are associated (or correlated) with ASA METROPOLIS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASA METROPOLIS FUNDO has no effect on the direction of Btg Pactual i.e., Btg Pactual and ASA METROPOLIS go up and down completely randomly.
Pair Corralation between Btg Pactual and ASA METROPOLIS
Assuming the 90 days trading horizon Btg Pactual Real is expected to under-perform the ASA METROPOLIS. But the fund apears to be less risky and, when comparing its historical volatility, Btg Pactual Real is 2.02 times less risky than ASA METROPOLIS. The fund trades about -0.31 of its potential returns per unit of risk. The ASA METROPOLIS FUNDO is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 6,299 in ASA METROPOLIS FUNDO on November 3, 2024 and sell it today you would lose (3,514) from holding ASA METROPOLIS FUNDO or give up 55.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 12.96% |
| Values | Daily Returns |
Btg Pactual Real vs. ASA METROPOLIS FUNDO
Performance |
| Timeline |
| Btg Pactual Real |
| ASA METROPOLIS FUNDO |
Btg Pactual and ASA METROPOLIS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Btg Pactual and ASA METROPOLIS
The main advantage of trading using opposite Btg Pactual and ASA METROPOLIS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Btg Pactual position performs unexpectedly, ASA METROPOLIS 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 ASA METROPOLIS will offset losses from the drop in ASA METROPOLIS's long position.| Btg Pactual vs. BTG Pactual Logstica | Btg Pactual vs. Fundo Investimento Imobiliario | Btg Pactual vs. KILIMA VOLKANO RECEBVEIS | Btg Pactual vs. DEVANT PROPERTIES FUNDO |
| ASA METROPOLIS vs. ASA RETROFITS I | ASA METROPOLIS vs. FDO INV IMOB | ASA METROPOLIS vs. SUPREMO FUNDO DE | ASA METROPOLIS vs. Real Estate Investment |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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