Correlation Between BTG Pactual and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Agilent Technologies 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 Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BTG Pactual Logstica and Agilent Technologies, you can compare the effects of market volatilities on BTG Pactual and Agilent Technologies 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 Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Agilent Technologies.
Diversification Opportunities for BTG Pactual and Agilent Technologies
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BTG and Agilent is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies 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 Logstica are associated (or correlated) with Agilent Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agilent Technologies has no effect on the direction of BTG Pactual i.e., BTG Pactual and Agilent Technologies go up and down completely randomly.
Pair Corralation between BTG Pactual and Agilent Technologies
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to generate 0.32 times more return on investment than Agilent Technologies. However, BTG Pactual Logstica is 3.16 times less risky than Agilent Technologies. It trades about 0.13 of its potential returns per unit of risk. Agilent Technologies is currently generating about -0.05 per unit of risk. If you would invest 9,570 in BTG Pactual Logstica on August 24, 2024 and sell it today you would earn a total of 160.00 from holding BTG Pactual Logstica or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Agilent Technologies
Performance |
| Timeline |
| BTG Pactual Logstica |
| Agilent Technologies |
BTG Pactual and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Agilent Technologies
The main advantage of trading using opposite BTG Pactual and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Agilent Technologies 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 Agilent Technologies will offset losses from the drop in Agilent Technologies' long position.| BTG Pactual vs. BTG Pactual Teva | BTG Pactual vs. BTG PACTUAL CRDITO | BTG Pactual vs. Real Estate Investment | BTG Pactual vs. NAVI CRDITO IMOBILIRIO |
| Agilent Technologies vs. Fras le SA | Agilent Technologies vs. Western Digital | Agilent Technologies vs. Clave Indices De | Agilent Technologies vs. BTG Pactual Logstica |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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