Correlation Between BTG Pactual and Cia De
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Cia De 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 Cia De 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 Cia de Ferro, you can compare the effects of market volatilities on BTG Pactual and Cia De 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 Cia De. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Cia De.
Diversification Opportunities for BTG Pactual and Cia De
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BTG and Cia is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Cia de Ferro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cia de Ferro 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 Cia De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cia de Ferro has no effect on the direction of BTG Pactual i.e., BTG Pactual and Cia De go up and down completely randomly.
Pair Corralation between BTG Pactual and Cia De
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to under-perform the Cia De. But the fund apears to be less risky and, when comparing its historical volatility, BTG Pactual Logstica is 2.38 times less risky than Cia De. The fund trades about -0.05 of its potential returns per unit of risk. The Cia de Ferro is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 784.00 in Cia de Ferro on August 29, 2024 and sell it today you would earn a total of 3.00 from holding Cia de Ferro or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Cia de Ferro
Performance |
| Timeline |
| BTG Pactual Logstica |
| Cia de Ferro |
BTG Pactual and Cia De Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Cia De
The main advantage of trading using opposite BTG Pactual and Cia De positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Cia De 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 Cia De will offset losses from the drop in Cia De's long position.| BTG Pactual vs. BTG Pactual Teva | BTG Pactual vs. BTG PACTUAL CRDITO | BTG Pactual vs. Real Estate Investment | BTG Pactual vs. NAVI CRDITO IMOBILIRIO |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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