Correlation Between BTG Pactual and Barclays PLC
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Barclays PLC 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 Barclays PLC 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 Barclays PLC, you can compare the effects of market volatilities on BTG Pactual and Barclays PLC 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 Barclays PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Barclays PLC.
Diversification Opportunities for BTG Pactual and Barclays PLC
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BTG and Barclays is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Barclays PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays PLC 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 Barclays PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays PLC has no effect on the direction of BTG Pactual i.e., BTG Pactual and Barclays PLC go up and down completely randomly.
Pair Corralation between BTG Pactual and Barclays PLC
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to under-perform the Barclays PLC. But the fund apears to be less risky and, when comparing its historical volatility, BTG Pactual Logstica is 1.94 times less risky than Barclays PLC. The fund trades about -0.04 of its potential returns per unit of risk. The Barclays PLC is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 5,610 in Barclays PLC on September 19, 2024 and sell it today you would earn a total of 2,694 from holding Barclays PLC or generate 48.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Barclays PLC
Performance |
| Timeline |
| BTG Pactual Logstica |
| Barclays PLC |
BTG Pactual and Barclays PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Barclays PLC
The main advantage of trading using opposite BTG Pactual and Barclays PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Barclays PLC 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 Barclays PLC will offset losses from the drop in Barclays PLC'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 |
| Barclays PLC vs. HSBC Holdings plc | Barclays PLC vs. Wells Fargo | Barclays PLC vs. BTG Pactual Logstica | Barclays PLC vs. Plano Plano Desenvolvimento |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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