Correlation Between BTG Pactual and Baxter International
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Baxter International 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 Baxter International 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 Baxter International, you can compare the effects of market volatilities on BTG Pactual and Baxter International 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 Baxter International. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Baxter International.
Diversification Opportunities for BTG Pactual and Baxter International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BTG and Baxter is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Baxter International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baxter International 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 Baxter International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baxter International has no effect on the direction of BTG Pactual i.e., BTG Pactual and Baxter International go up and down completely randomly.
Pair Corralation between BTG Pactual and Baxter International
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to generate 0.28 times more return on investment than Baxter International. However, BTG Pactual Logstica is 3.55 times less risky than Baxter International. It trades about 0.29 of its potential returns per unit of risk. Baxter International is currently generating about 0.07 per unit of risk. If you would invest 9,091 in BTG Pactual Logstica on November 28, 2024 and sell it today you would earn a total of 486.00 from holding BTG Pactual Logstica or generate 5.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Baxter International
Performance |
| Timeline |
| BTG Pactual Logstica |
| Baxter International |
BTG Pactual and Baxter International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Baxter International
The main advantage of trading using opposite BTG Pactual and Baxter International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Baxter International 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 Baxter International will offset losses from the drop in Baxter International's long position.| BTG Pactual vs. Btg Pactual Real | BTG Pactual vs. Fundo Investimento Imobiliario | BTG Pactual vs. KILIMA VOLKANO RECEBVEIS | BTG Pactual vs. DEVANT PROPERTIES FUNDO |
| Baxter International vs. Intuitive Surgical | Baxter International vs. Fleury SA | Baxter International vs. Baumer SA | Baxter International vs. Baumer 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |