Correlation Between BTG Pactual and G2D Investments
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and G2D Investments 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 G2D Investments 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 G2D Investments, you can compare the effects of market volatilities on BTG Pactual and G2D Investments 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 G2D Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and G2D Investments.
Diversification Opportunities for BTG Pactual and G2D Investments
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between BTG and G2D is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and G2D Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G2D Investments 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 G2D Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G2D Investments has no effect on the direction of BTG Pactual i.e., BTG Pactual and G2D Investments go up and down completely randomly.
Pair Corralation between BTG Pactual and G2D Investments
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to generate 0.41 times more return on investment than G2D Investments. However, BTG Pactual Logstica is 2.47 times less risky than G2D Investments. It trades about 0.01 of its potential returns per unit of risk. G2D Investments is currently generating about -0.02 per unit of risk. If you would invest 9,599 in BTG Pactual Logstica on August 30, 2024 and sell it today you would earn a total of 13.00 from holding BTG Pactual Logstica or generate 0.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Pactual Logstica vs. G2D Investments
Performance |
| Timeline |
| BTG Pactual Logstica |
| G2D Investments |
BTG Pactual and G2D Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and G2D Investments
The main advantage of trading using opposite BTG Pactual and G2D Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, G2D Investments 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 G2D Investments will offset losses from the drop in G2D Investments' 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 |
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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