Correlation Between BTG Pactual and Fundo De
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Fundo De 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 Fundo De 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 Fundo de Investimento, you can compare the effects of market volatilities on BTG Pactual and Fundo De 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 Fundo De. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Fundo De.
Diversification Opportunities for BTG Pactual and Fundo De
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BTG and Fundo is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Fundo de Investimento in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fundo de Investimento 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 Fundo De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fundo de Investimento has no effect on the direction of BTG Pactual i.e., BTG Pactual and Fundo De go up and down completely randomly.
Pair Corralation between BTG Pactual and Fundo De
Assuming the 90 days trading horizon BTG Pactual is expected to generate 1.12 times less return on investment than Fundo De. But when comparing it to its historical volatility, BTG Pactual Logstica is 1.19 times less risky than Fundo De. It trades about 0.01 of its potential returns per unit of risk. Fundo de Investimento is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 5,774 in Fundo de Investimento on September 3, 2024 and sell it today you would earn a total of 151.00 from holding Fundo de Investimento or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Fundo de Investimento
Performance |
| Timeline |
| BTG Pactual Logstica |
| Fundo de Investimento |
BTG Pactual and Fundo De Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Fundo De
The main advantage of trading using opposite BTG Pactual and Fundo De positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Fundo De 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 Fundo De will offset losses from the drop in Fundo De'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 |
| Fundo De vs. Fundo De Investimentos | Fundo De vs. Fundo Invest Imobiliario | Fundo De vs. Fundo Investec IMB | Fundo De vs. Fundo De Investimento |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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