Correlation Between BTG Pactual and CSHG Renda
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and CSHG Renda 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 CSHG Renda 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 CSHG Renda Urbana, you can compare the effects of market volatilities on BTG Pactual and CSHG Renda 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 CSHG Renda. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and CSHG Renda.
Diversification Opportunities for BTG Pactual and CSHG Renda
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BTG and CSHG is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and CSHG Renda Urbana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSHG Renda Urbana 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 CSHG Renda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSHG Renda Urbana has no effect on the direction of BTG Pactual i.e., BTG Pactual and CSHG Renda go up and down completely randomly.
Pair Corralation between BTG Pactual and CSHG Renda
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to under-perform the CSHG Renda. In addition to that, BTG Pactual is 1.47 times more volatile than CSHG Renda Urbana. It trades about -0.14 of its total potential returns per unit of risk. CSHG Renda Urbana is currently generating about -0.19 per unit of volatility. If you would invest 12,314 in CSHG Renda Urbana on September 12, 2024 and sell it today you would lose (1,179) from holding CSHG Renda Urbana or give up 9.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Pactual Logstica vs. CSHG Renda Urbana
Performance |
| Timeline |
| BTG Pactual Logstica |
| CSHG Renda Urbana |
BTG Pactual and CSHG Renda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and CSHG Renda
The main advantage of trading using opposite BTG Pactual and CSHG Renda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, CSHG Renda 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 CSHG Renda will offset losses from the drop in CSHG Renda'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 |
| CSHG Renda vs. CSHG Recebiveis Imobiliarios | CSHG Renda vs. CSHG Imobiliario Fof | CSHG Renda vs. FDO INV IMOB | CSHG Renda vs. SUPREMO FUNDO DE |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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