Correlation Between BTG Pactual and Caixa Rio
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Caixa Rio 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 Caixa Rio 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 Caixa Rio Bravo, you can compare the effects of market volatilities on BTG Pactual and Caixa Rio 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 Caixa Rio. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Caixa Rio.
Diversification Opportunities for BTG Pactual and Caixa Rio
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BTG and Caixa is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Caixa Rio Bravo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caixa Rio Bravo 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 Caixa Rio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caixa Rio Bravo has no effect on the direction of BTG Pactual i.e., BTG Pactual and Caixa Rio go up and down completely randomly.
Pair Corralation between BTG Pactual and Caixa Rio
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to under-perform the Caixa Rio. But the fund apears to be less risky and, when comparing its historical volatility, BTG Pactual Logstica is 2.93 times less risky than Caixa Rio. The fund trades about -0.05 of its potential returns per unit of risk. The Caixa Rio Bravo is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 7,679 in Caixa Rio Bravo on September 4, 2024 and sell it today you would lose (789.00) from holding Caixa Rio Bravo or give up 10.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Caixa Rio Bravo
Performance |
| Timeline |
| BTG Pactual Logstica |
| Caixa Rio Bravo |
BTG Pactual and Caixa Rio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Caixa Rio
The main advantage of trading using opposite BTG Pactual and Caixa Rio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Caixa Rio 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 Caixa Rio will offset losses from the drop in Caixa Rio'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 |
| Caixa Rio vs. Fras le SA | Caixa Rio vs. Western Digital | Caixa Rio vs. Clave Indices De | Caixa Rio 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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