Correlation Between BTG Pactual and Enjoei SA
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Enjoei SA 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 Enjoei SA 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 Enjoei SA, you can compare the effects of market volatilities on BTG Pactual and Enjoei SA 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 Enjoei SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Enjoei SA.
Diversification Opportunities for BTG Pactual and Enjoei SA
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BTG and Enjoei is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Enjoei SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enjoei SA 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 Enjoei SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enjoei SA has no effect on the direction of BTG Pactual i.e., BTG Pactual and Enjoei SA go up and down completely randomly.
Pair Corralation between BTG Pactual and Enjoei SA
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to generate 0.24 times more return on investment than Enjoei SA. However, BTG Pactual Logstica is 4.24 times less risky than Enjoei SA. It trades about 0.03 of its potential returns per unit of risk. Enjoei SA is currently generating about -0.05 per unit of risk. If you would invest 9,695 in BTG Pactual Logstica on August 23, 2024 and sell it today you would earn a total of 35.00 from holding BTG Pactual Logstica or generate 0.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 90.48% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Enjoei SA
Performance |
| Timeline |
| BTG Pactual Logstica |
| Enjoei SA |
BTG Pactual and Enjoei SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Enjoei SA
The main advantage of trading using opposite BTG Pactual and Enjoei SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Enjoei SA 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 Enjoei SA will offset losses from the drop in Enjoei SA's long position.| BTG Pactual vs. Energisa SA | BTG Pactual vs. Plano Plano Desenvolvimento | BTG Pactual vs. Companhia Habitasul de | BTG Pactual vs. The Procter Gamble |
| Enjoei SA vs. Alibaba Group Holding | Enjoei SA vs. Amazon Inc | Enjoei SA vs. BTG Pactual Logstica | Enjoei SA vs. Companhia Paranaense 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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