Correlation Between BTG Pactual and Hedge Logistica
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Hedge Logistica 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 Hedge Logistica 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 Hedge Logistica Fundo, you can compare the effects of market volatilities on BTG Pactual and Hedge Logistica 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 Hedge Logistica. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Hedge Logistica.
Diversification Opportunities for BTG Pactual and Hedge Logistica
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BTG and Hedge is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Hedge Logistica Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hedge Logistica Fundo 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 Hedge Logistica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hedge Logistica Fundo has no effect on the direction of BTG Pactual i.e., BTG Pactual and Hedge Logistica go up and down completely randomly.
Pair Corralation between BTG Pactual and Hedge Logistica
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to under-perform the Hedge Logistica. But the fund apears to be less risky and, when comparing its historical volatility, BTG Pactual Logstica is 1.38 times less risky than Hedge Logistica. The fund trades about -0.03 of its potential returns per unit of risk. The Hedge Logistica Fundo is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 8,689 in Hedge Logistica Fundo on September 2, 2024 and sell it today you would lose (389.00) from holding Hedge Logistica Fundo or give up 4.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Hedge Logistica Fundo
Performance |
| Timeline |
| BTG Pactual Logstica |
| Hedge Logistica Fundo |
BTG Pactual and Hedge Logistica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Hedge Logistica
The main advantage of trading using opposite BTG Pactual and Hedge Logistica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Hedge Logistica 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 Hedge Logistica will offset losses from the drop in Hedge Logistica's long position.| BTG Pactual vs. Plano Plano Desenvolvimento | BTG Pactual vs. Cable One | BTG Pactual vs. ATMA Participaes SA | BTG Pactual vs. British American Tobacco |
| Hedge Logistica vs. Energisa SA | Hedge Logistica vs. BTG Pactual Logstica | Hedge Logistica vs. Plano Plano Desenvolvimento | Hedge Logistica vs. Companhia Habitasul 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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