Correlation Between BTG Pactual and Ishares Msci
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Ishares Msci 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 Ishares Msci 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 Ishares Msci Japan, you can compare the effects of market volatilities on BTG Pactual and Ishares Msci 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 Ishares Msci. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Ishares Msci.
Diversification Opportunities for BTG Pactual and Ishares Msci
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between BTG and Ishares is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Ishares Msci Japan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ishares Msci Japan 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 Ishares Msci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ishares Msci Japan has no effect on the direction of BTG Pactual i.e., BTG Pactual and Ishares Msci go up and down completely randomly.
Pair Corralation between BTG Pactual and Ishares Msci
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to under-perform the Ishares Msci. But the fund apears to be less risky and, when comparing its historical volatility, BTG Pactual Logstica is 1.48 times less risky than Ishares Msci. The fund trades about -0.16 of its potential returns per unit of risk. The Ishares Msci Japan is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 4,985 in Ishares Msci Japan on September 2, 2024 and sell it today you would earn a total of 235.00 from holding Ishares Msci Japan or generate 4.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Ishares Msci Japan
Performance |
| Timeline |
| BTG Pactual Logstica |
| Ishares Msci Japan |
BTG Pactual and Ishares Msci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Ishares Msci
The main advantage of trading using opposite BTG Pactual and Ishares Msci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Ishares Msci 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 Ishares Msci will offset losses from the drop in Ishares Msci'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 |
| Ishares Msci vs. Energisa SA | Ishares Msci vs. BTG Pactual Logstica | Ishares Msci vs. Plano Plano Desenvolvimento | Ishares Msci 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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