Correlation Between BTG Pactual and Ambipar Participaes
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Ambipar Participaes 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 Ambipar Participaes 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 Ambipar Participaes e, you can compare the effects of market volatilities on BTG Pactual and Ambipar Participaes 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 Ambipar Participaes. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Ambipar Participaes.
Diversification Opportunities for BTG Pactual and Ambipar Participaes
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BTG and Ambipar is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Ambipar Participaes e in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambipar Participaes 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 Ambipar Participaes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambipar Participaes has no effect on the direction of BTG Pactual i.e., BTG Pactual and Ambipar Participaes go up and down completely randomly.
Pair Corralation between BTG Pactual and Ambipar Participaes
Assuming the 90 days trading horizon BTG Pactual is expected to generate 33.8 times less return on investment than Ambipar Participaes. But when comparing it to its historical volatility, BTG Pactual Logstica is 8.26 times less risky than Ambipar Participaes. It trades about 0.05 of its potential returns per unit of risk. Ambipar Participaes e is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 13,240 in Ambipar Participaes e on August 27, 2024 and sell it today you would earn a total of 3,310 from holding Ambipar Participaes e or generate 25.0% 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. Ambipar Participaes e
Performance |
| Timeline |
| BTG Pactual Logstica |
| Ambipar Participaes |
BTG Pactual and Ambipar Participaes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Ambipar Participaes
The main advantage of trading using opposite BTG Pactual and Ambipar Participaes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Ambipar Participaes 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 Ambipar Participaes will offset losses from the drop in Ambipar Participaes' 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 |
| Ambipar Participaes vs. SIMPAR SA | Ambipar Participaes vs. Pet Center Comrcio | Ambipar Participaes vs. Movida Participaes SA |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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