Correlation Between BTG Pactual and Halliburton
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Halliburton 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 Halliburton 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 Halliburton, you can compare the effects of market volatilities on BTG Pactual and Halliburton 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 Halliburton. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Halliburton.
Diversification Opportunities for BTG Pactual and Halliburton
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BTG and Halliburton is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Halliburton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton 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 Halliburton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halliburton has no effect on the direction of BTG Pactual i.e., BTG Pactual and Halliburton go up and down completely randomly.
Pair Corralation between BTG Pactual and Halliburton
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to generate 0.31 times more return on investment than Halliburton. However, BTG Pactual Logstica is 3.19 times less risky than Halliburton. It trades about 0.2 of its potential returns per unit of risk. Halliburton is currently generating about -0.15 per unit of risk. If you would invest 9,010 in BTG Pactual Logstica on October 14, 2024 and sell it today you would earn a total of 541.00 from holding BTG Pactual Logstica or generate 6.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Halliburton
Performance |
| Timeline |
| BTG Pactual Logstica |
| Halliburton |
BTG Pactual and Halliburton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Halliburton
The main advantage of trading using opposite BTG Pactual and Halliburton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Halliburton 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 Halliburton will offset losses from the drop in Halliburton's long position.| BTG Pactual vs. Btg Pactual Real | BTG Pactual vs. Fundo Investimento Imobiliario | BTG Pactual vs. KILIMA VOLKANO RECEBVEIS | BTG Pactual vs. DEVANT PROPERTIES FUNDO |
| Halliburton vs. Schlumberger Limited | Halliburton vs. TechnipFMC plc | Halliburton vs. Energisa SA | Halliburton vs. BTG Pactual Logstica |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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