Correlation Between BTG Pactual and Caixa Seguridade
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Caixa Seguridade 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 Seguridade 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 Seguridade Participaes, you can compare the effects of market volatilities on BTG Pactual and Caixa Seguridade 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 Seguridade. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Caixa Seguridade.
Diversification Opportunities for BTG Pactual and Caixa Seguridade
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BTG and Caixa is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Caixa Seguridade Participaes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caixa Seguridade Par 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 Seguridade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caixa Seguridade Par has no effect on the direction of BTG Pactual i.e., BTG Pactual and Caixa Seguridade go up and down completely randomly.
Pair Corralation between BTG Pactual and Caixa Seguridade
Assuming the 90 days trading horizon BTG Pactual is expected to generate 13.11 times less return on investment than Caixa Seguridade. But when comparing it to its historical volatility, BTG Pactual Logstica is 2.61 times less risky than Caixa Seguridade. It trades about 0.02 of its potential returns per unit of risk. Caixa Seguridade Participaes is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 672.00 in Caixa Seguridade Participaes on August 29, 2024 and sell it today you would earn a total of 825.00 from holding Caixa Seguridade Participaes or generate 122.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Caixa Seguridade Participaes
Performance |
| Timeline |
| BTG Pactual Logstica |
| Caixa Seguridade Par |
BTG Pactual and Caixa Seguridade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Caixa Seguridade
The main advantage of trading using opposite BTG Pactual and Caixa Seguridade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Caixa Seguridade 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 Seguridade will offset losses from the drop in Caixa Seguridade'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 |
| Caixa Seguridade vs. Porto Seguro SA | Caixa Seguridade vs. Energisa SA | Caixa Seguridade vs. BTG Pactual Logstica | Caixa Seguridade vs. Plano Plano Desenvolvimento |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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