Correlation Between BTG Pactual and Trend Etf
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Trend Etf 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 Trend Etf 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 Trend Etf Msci, you can compare the effects of market volatilities on BTG Pactual and Trend Etf 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 Trend Etf. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Trend Etf.
Diversification Opportunities for BTG Pactual and Trend Etf
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BTG and Trend is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Trend Etf Msci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trend Etf Msci 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 Trend Etf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trend Etf Msci has no effect on the direction of BTG Pactual i.e., BTG Pactual and Trend Etf go up and down completely randomly.
Pair Corralation between BTG Pactual and Trend Etf
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to under-perform the Trend Etf. But the fund apears to be less risky and, when comparing its historical volatility, BTG Pactual Logstica is 1.21 times less risky than Trend Etf. The fund trades about -0.03 of its potential returns per unit of risk. The Trend Etf Msci is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 995.00 in Trend Etf Msci on September 2, 2024 and sell it today you would earn a total of 515.00 from holding Trend Etf Msci or generate 51.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Trend Etf Msci
Performance |
| Timeline |
| BTG Pactual Logstica |
| Trend Etf Msci |
BTG Pactual and Trend Etf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Trend Etf
The main advantage of trading using opposite BTG Pactual and Trend Etf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Trend Etf 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 Trend Etf will offset losses from the drop in Trend Etf's long position.| BTG Pactual vs. Plano Plano Desenvolvimento | BTG Pactual vs. Cable One | BTG Pactual vs. ATMA Participaes SA | BTG Pactual vs. British American Tobacco |
| Trend Etf vs. Energisa SA | Trend Etf vs. BTG Pactual Logstica | Trend Etf vs. Plano Plano Desenvolvimento | Trend Etf vs. Companhia Habitasul de |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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