Correlation Between BTG Pactual and SPARTA FIAGRO
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and SPARTA FIAGRO 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 SPARTA FIAGRO 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 SPARTA FIAGRO FDO, you can compare the effects of market volatilities on BTG Pactual and SPARTA FIAGRO 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 SPARTA FIAGRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and SPARTA FIAGRO.
Diversification Opportunities for BTG Pactual and SPARTA FIAGRO
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BTG and SPARTA is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and SPARTA FIAGRO FDO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPARTA FIAGRO FDO 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 SPARTA FIAGRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPARTA FIAGRO FDO has no effect on the direction of BTG Pactual i.e., BTG Pactual and SPARTA FIAGRO go up and down completely randomly.
Pair Corralation between BTG Pactual and SPARTA FIAGRO
Assuming the 90 days trading horizon BTG Pactual is expected to generate 3.99 times less return on investment than SPARTA FIAGRO. But when comparing it to its historical volatility, BTG Pactual Logstica is 1.23 times less risky than SPARTA FIAGRO. It trades about 0.02 of its potential returns per unit of risk. SPARTA FIAGRO FDO is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8,000 in SPARTA FIAGRO FDO on August 26, 2024 and sell it today you would earn a total of 1,920 from holding SPARTA FIAGRO FDO or generate 24.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 82.77% |
| Values | Daily Returns |
BTG Pactual Logstica vs. SPARTA FIAGRO FDO
Performance |
| Timeline |
| BTG Pactual Logstica |
| SPARTA FIAGRO FDO |
BTG Pactual and SPARTA FIAGRO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and SPARTA FIAGRO
The main advantage of trading using opposite BTG Pactual and SPARTA FIAGRO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, SPARTA FIAGRO 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 SPARTA FIAGRO will offset losses from the drop in SPARTA FIAGRO's long position.| BTG Pactual vs. Fundo Investimento Imobiliario | BTG Pactual vs. KILIMA VOLKANO RECEBVEIS | BTG Pactual vs. Santander Renda De | BTG Pactual vs. DEVANT PROPERTIES FUNDO |
| SPARTA FIAGRO vs. BTG Pactual Logstica | SPARTA FIAGRO vs. Fundo Investimento Imobiliario | SPARTA FIAGRO vs. KILIMA VOLKANO RECEBVEIS | SPARTA FIAGRO vs. Santander Renda 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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