Correlation Between BTG Pactual and Baumer SA
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Baumer SA 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 Baumer SA 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 Baumer SA, you can compare the effects of market volatilities on BTG Pactual and Baumer SA 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 Baumer SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Baumer SA.
Diversification Opportunities for BTG Pactual and Baumer SA
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BTG and Baumer is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Baumer SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baumer SA 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 Baumer SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baumer SA has no effect on the direction of BTG Pactual i.e., BTG Pactual and Baumer SA go up and down completely randomly.
Pair Corralation between BTG Pactual and Baumer SA
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to generate 0.65 times more return on investment than Baumer SA. However, BTG Pactual Logstica is 1.53 times less risky than Baumer SA. It trades about 0.01 of its potential returns per unit of risk. Baumer SA is currently generating about 0.0 per unit of risk. If you would invest 9,599 in BTG Pactual Logstica on August 30, 2024 and sell it today you would earn a total of 13.00 from holding BTG Pactual Logstica or generate 0.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Baumer SA
Performance |
| Timeline |
| BTG Pactual Logstica |
| Baumer SA |
BTG Pactual and Baumer SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Baumer SA
The main advantage of trading using opposite BTG Pactual and Baumer SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Baumer SA 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 Baumer SA will offset losses from the drop in Baumer SA's long position.| BTG Pactual vs. Fundo Investimento Imobiliario | BTG Pactual vs. KILIMA VOLKANO RECEBVEIS | BTG Pactual vs. DEVANT PROPERTIES FUNDO | BTG Pactual vs. SPARTA FIAGRO FDO |
| Baumer SA vs. Fleury SA | Baumer SA vs. Baumer SA | Baumer SA vs. Energisa SA | Baumer SA 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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