Correlation Between BTG Pactual and HUSI11
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and HUSI11 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 HUSI11 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 HUSI11, you can compare the effects of market volatilities on BTG Pactual and HUSI11 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 HUSI11. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and HUSI11.
Diversification Opportunities for BTG Pactual and HUSI11
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BTG and HUSI11 is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and HUSI11 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUSI11 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 HUSI11. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUSI11 has no effect on the direction of BTG Pactual i.e., BTG Pactual and HUSI11 go up and down completely randomly.
Pair Corralation between BTG Pactual and HUSI11
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to under-perform the HUSI11. In addition to that, BTG Pactual is 7.37 times more volatile than HUSI11. It trades about -0.17 of its total potential returns per unit of risk. HUSI11 is currently generating about 0.22 per unit of volatility. If you would invest 121,144 in HUSI11 on September 13, 2024 and sell it today you would earn a total of 1,356 from holding HUSI11 or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Pactual Logstica vs. HUSI11
Performance |
| Timeline |
| BTG Pactual Logstica |
| HUSI11 |
BTG Pactual and HUSI11 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and HUSI11
The main advantage of trading using opposite BTG Pactual and HUSI11 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, HUSI11 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 HUSI11 will offset losses from the drop in HUSI11'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 |
| HUSI11 vs. BTG Pactual Logstica | HUSI11 vs. Plano Plano Desenvolvimento | HUSI11 vs. Companhia Habitasul de | HUSI11 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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