Correlation Between BTG Pactual and Hedge Recebiveis
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Hedge Recebiveis 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 Recebiveis 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 Recebiveis Fundo, you can compare the effects of market volatilities on BTG Pactual and Hedge Recebiveis 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 Recebiveis. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Hedge Recebiveis.
Diversification Opportunities for BTG Pactual and Hedge Recebiveis
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BTG and Hedge is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Hedge Recebiveis Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hedge Recebiveis 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 Recebiveis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hedge Recebiveis Fundo has no effect on the direction of BTG Pactual i.e., BTG Pactual and Hedge Recebiveis go up and down completely randomly.
Pair Corralation between BTG Pactual and Hedge Recebiveis
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to under-perform the Hedge Recebiveis. In addition to that, BTG Pactual is 2.39 times more volatile than Hedge Recebiveis Fundo. It trades about -0.18 of its total potential returns per unit of risk. Hedge Recebiveis Fundo is currently generating about -0.34 per unit of volatility. If you would invest 806.00 in Hedge Recebiveis Fundo on September 12, 2024 and sell it today you would lose (42.00) from holding Hedge Recebiveis Fundo or give up 5.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Hedge Recebiveis Fundo
Performance |
| Timeline |
| BTG Pactual Logstica |
| Hedge Recebiveis Fundo |
BTG Pactual and Hedge Recebiveis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Hedge Recebiveis
The main advantage of trading using opposite BTG Pactual and Hedge Recebiveis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Hedge Recebiveis 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 Recebiveis will offset losses from the drop in Hedge Recebiveis' 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 |
| Hedge Recebiveis vs. BTG Pactual Logstica | Hedge Recebiveis vs. Plano Plano Desenvolvimento | Hedge Recebiveis vs. Companhia Habitasul de | Hedge Recebiveis vs. FDO INV IMOB |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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