Correlation Between BTG Pactual and Hidrovias
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Hidrovias 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 Hidrovias 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 Hidrovias do Brasil, you can compare the effects of market volatilities on BTG Pactual and Hidrovias 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 Hidrovias. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Hidrovias.
Diversification Opportunities for BTG Pactual and Hidrovias
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BTG and Hidrovias is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Hidrovias do Brasil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hidrovias do Brasil 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 Hidrovias. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hidrovias do Brasil has no effect on the direction of BTG Pactual i.e., BTG Pactual and Hidrovias go up and down completely randomly.
Pair Corralation between BTG Pactual and Hidrovias
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to under-perform the Hidrovias. But the fund apears to be less risky and, when comparing its historical volatility, BTG Pactual Logstica is 1.95 times less risky than Hidrovias. The fund trades about -0.17 of its potential returns per unit of risk. The Hidrovias do Brasil is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 312.00 in Hidrovias do Brasil on September 12, 2024 and sell it today you would lose (20.00) from holding Hidrovias do Brasil or give up 6.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Hidrovias do Brasil
Performance |
| Timeline |
| BTG Pactual Logstica |
| Hidrovias do Brasil |
BTG Pactual and Hidrovias Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Hidrovias
The main advantage of trading using opposite BTG Pactual and Hidrovias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Hidrovias 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 Hidrovias will offset losses from the drop in Hidrovias' long position.| BTG Pactual vs. BTG Pactual Teva | BTG Pactual vs. BTG PACTUAL CRDITO | BTG Pactual vs. FDO INV IMOB | BTG Pactual vs. SUPREMO FUNDO DE |
| Hidrovias vs. Aeris Indstria e | Hidrovias vs. Sequoia Logstica e | Hidrovias vs. Grupo Mateus SA | Hidrovias vs. Santos Brasil Participaes |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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