Correlation Between BTG Pactual and Companhia Habitasul
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Companhia Habitasul 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 Companhia Habitasul 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 Companhia Habitasul de, you can compare the effects of market volatilities on BTG Pactual and Companhia Habitasul 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 Companhia Habitasul. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Companhia Habitasul.
Diversification Opportunities for BTG Pactual and Companhia Habitasul
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BTG and Companhia is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Companhia Habitasul de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Companhia Habitasul 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 Companhia Habitasul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Companhia Habitasul has no effect on the direction of BTG Pactual i.e., BTG Pactual and Companhia Habitasul go up and down completely randomly.
Pair Corralation between BTG Pactual and Companhia Habitasul
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to generate 0.3 times more return on investment than Companhia Habitasul. However, BTG Pactual Logstica is 3.32 times less risky than Companhia Habitasul. It trades about 0.07 of its potential returns per unit of risk. Companhia Habitasul de is currently generating about -0.06 per unit of risk. If you would invest 9,620 in BTG Pactual Logstica on August 27, 2024 and sell it today you would earn a total of 88.00 from holding BTG Pactual Logstica or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Companhia Habitasul de
Performance |
| Timeline |
| BTG Pactual Logstica |
| Companhia Habitasul |
BTG Pactual and Companhia Habitasul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Companhia Habitasul
The main advantage of trading using opposite BTG Pactual and Companhia Habitasul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Companhia Habitasul 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 Companhia Habitasul will offset losses from the drop in Companhia Habitasul's long position.| BTG Pactual vs. Fundo Investimento Imobiliario | BTG Pactual vs. KILIMA VOLKANO RECEBVEIS | BTG Pactual vs. Santander Renda De | BTG Pactual vs. DEVANT PROPERTIES FUNDO |
| Companhia Habitasul vs. BTG Pactual Logstica | Companhia Habitasul vs. Plano Plano Desenvolvimento | Companhia Habitasul vs. Cable One | Companhia Habitasul vs. ATMA Participaes SA |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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