Correlation Between BTG Pactual and Real Estate
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Real Estate 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 Real Estate 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 Real Estate Investment, you can compare the effects of market volatilities on BTG Pactual and Real Estate 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 Real Estate. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Real Estate.
Diversification Opportunities for BTG Pactual and Real Estate
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between BTG and Real is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Real Estate Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Real Estate Investment 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 Real Estate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Real Estate Investment has no effect on the direction of BTG Pactual i.e., BTG Pactual and Real Estate go up and down completely randomly.
Pair Corralation between BTG Pactual and Real Estate
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to under-perform the Real Estate. In addition to that, BTG Pactual is 2.22 times more volatile than Real Estate Investment. It trades about -0.17 of its total potential returns per unit of risk. Real Estate Investment is currently generating about -0.05 per unit of volatility. If you would invest 49,229 in Real Estate Investment on September 13, 2024 and sell it today you would lose (434.00) from holding Real Estate Investment or give up 0.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Real Estate Investment
Performance |
| Timeline |
| BTG Pactual Logstica |
| Real Estate Investment |
BTG Pactual and Real Estate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Real Estate
The main advantage of trading using opposite BTG Pactual and Real Estate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Real Estate 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 Real Estate will offset losses from the drop in Real Estate'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 |
| Real Estate vs. FDO INV IMOB | Real Estate vs. SUPREMO FUNDO DE | Real Estate vs. Real Estate Investment | Real Estate vs. NAVI CRDITO IMOBILIRIO |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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