Correlation Between BTG Pactual and Equinix
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Equinix 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 Equinix 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 Equinix, you can compare the effects of market volatilities on BTG Pactual and Equinix 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 Equinix. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Equinix.
Diversification Opportunities for BTG Pactual and Equinix
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BTG and Equinix is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Equinix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equinix 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 Equinix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equinix has no effect on the direction of BTG Pactual i.e., BTG Pactual and Equinix go up and down completely randomly.
Pair Corralation between BTG Pactual and Equinix
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to under-perform the Equinix. But the fund apears to be less risky and, when comparing its historical volatility, BTG Pactual Logstica is 3.73 times less risky than Equinix. The fund trades about -0.07 of its potential returns per unit of risk. The Equinix is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 6,602 in Equinix on September 1, 2024 and sell it today you would earn a total of 781.00 from holding Equinix or generate 11.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Equinix
Performance |
| Timeline |
| BTG Pactual Logstica |
| Equinix |
BTG Pactual and Equinix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Equinix
The main advantage of trading using opposite BTG Pactual and Equinix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Equinix 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 Equinix will offset losses from the drop in Equinix'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 |
| Equinix vs. Unity Software | Equinix vs. Cognizant Technology Solutions | Equinix vs. Uber Technologies | Equinix vs. BIONTECH SE DRN |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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