Correlation Between BTG Pactual and Mxima Renda
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Mxima Renda 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 Mxima Renda 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 Mxima Renda Corporativa, you can compare the effects of market volatilities on BTG Pactual and Mxima Renda 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 Mxima Renda. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Mxima Renda.
Diversification Opportunities for BTG Pactual and Mxima Renda
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BTG and Mxima is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Mxima Renda Corporativa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mxima Renda Corporativa 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 Mxima Renda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mxima Renda Corporativa has no effect on the direction of BTG Pactual i.e., BTG Pactual and Mxima Renda go up and down completely randomly.
Pair Corralation between BTG Pactual and Mxima Renda
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to generate 0.32 times more return on investment than Mxima Renda. However, BTG Pactual Logstica is 3.15 times less risky than Mxima Renda. It trades about 0.13 of its potential returns per unit of risk. Mxima Renda Corporativa is currently generating about -0.05 per unit of risk. If you would invest 9,570 in BTG Pactual Logstica on August 24, 2024 and sell it today you would earn a total of 160.00 from holding BTG Pactual Logstica or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 85.71% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Mxima Renda Corporativa
Performance |
| Timeline |
| BTG Pactual Logstica |
| Mxima Renda Corporativa |
BTG Pactual and Mxima Renda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Mxima Renda
The main advantage of trading using opposite BTG Pactual and Mxima Renda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Mxima Renda 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 Mxima Renda will offset losses from the drop in Mxima Renda's long position.| BTG Pactual vs. BTG Pactual Teva | BTG Pactual vs. BTG PACTUAL CRDITO | BTG Pactual vs. Real Estate Investment | BTG Pactual vs. NAVI CRDITO IMOBILIRIO |
| Mxima Renda vs. Real Estate Investment | Mxima Renda vs. NAVI CRDITO IMOBILIRIO | Mxima Renda vs. LIFE CAPITAL PARTNERS | Mxima Renda vs. Cshg Jhsf Prime |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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