Correlation Between Btg Pactual and BTG Pactual
Can any of the company-specific risk be diversified away by investing in both Btg Pactual 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 Btg Pactual and BTG Pactual 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 BTG Pactual Logstica, you can compare the effects of market volatilities on Btg Pactual 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 Btg Pactual with a short position of BTG Pactual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Btg Pactual and BTG Pactual.
Diversification Opportunities for Btg Pactual and BTG Pactual
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Btg and BTG is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Btg Pactual Real 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 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 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 Btg Pactual i.e., Btg Pactual and BTG Pactual go up and down completely randomly.
Pair Corralation between Btg Pactual and BTG Pactual
Assuming the 90 days trading horizon Btg Pactual Real is expected to under-perform the BTG Pactual. In addition to that, Btg Pactual is 1.31 times more volatile than BTG Pactual Logstica. It trades about -0.81 of its total potential returns per unit of risk. BTG Pactual Logstica is currently generating about 0.02 per unit of volatility. If you would invest 8,985 in BTG Pactual Logstica on October 13, 2024 and sell it today you would earn a total of 566.00 from holding BTG Pactual Logstica or generate 6.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 3.43% |
| Values | Daily Returns |
Btg Pactual Real vs. BTG Pactual Logstica
Performance |
| Timeline |
| Btg Pactual Real |
| BTG Pactual Logstica |
Btg Pactual and BTG Pactual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Btg Pactual and BTG Pactual
The main advantage of trading using opposite Btg Pactual and BTG Pactual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Btg Pactual 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.| Btg Pactual vs. Energisa SA | Btg Pactual vs. BTG Pactual Logstica | Btg Pactual vs. Plano Plano Desenvolvimento | Btg Pactual vs. Ares Management |
| BTG Pactual vs. Btg Pactual Real | 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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