Correlation Between Btg Pactual and Energisa
Can any of the company-specific risk be diversified away by investing in both Btg Pactual and Energisa 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 Energisa 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 Energisa SA, you can compare the effects of market volatilities on Btg Pactual and Energisa 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 Energisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Btg Pactual and Energisa.
Diversification Opportunities for Btg Pactual and Energisa
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Btg and Energisa is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Btg Pactual Real and Energisa SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energisa SA 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 Energisa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energisa SA has no effect on the direction of Btg Pactual i.e., Btg Pactual and Energisa go up and down completely randomly.
Pair Corralation between Btg Pactual and Energisa
Assuming the 90 days trading horizon Btg Pactual Real is expected to under-perform the Energisa. But the fund apears to be less risky and, when comparing its historical volatility, Btg Pactual Real is 2.11 times less risky than Energisa. The fund trades about -0.81 of its potential returns per unit of risk. The Energisa SA is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 3,830 in Energisa SA on October 14, 2024 and sell it today you would lose (176.00) from holding Energisa SA or give up 4.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Btg Pactual Real vs. Energisa SA
Performance |
| Timeline |
| Btg Pactual Real |
| Energisa SA |
Btg Pactual and Energisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Btg Pactual and Energisa
The main advantage of trading using opposite Btg Pactual and Energisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Btg Pactual position performs unexpectedly, Energisa 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 Energisa will offset losses from the drop in Energisa'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 |
| Energisa vs. Equatorial Energia SA | Energisa vs. CPFL Energia SA | Energisa vs. Eneva SA | Energisa vs. Companhia de Saneamento |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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