Correlation Between BTG Pactual and IRIDIUM FUNDO
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and IRIDIUM FUNDO 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 IRIDIUM FUNDO 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 IRIDIUM FUNDO DE, you can compare the effects of market volatilities on BTG Pactual and IRIDIUM FUNDO 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 IRIDIUM FUNDO. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and IRIDIUM FUNDO.
Diversification Opportunities for BTG Pactual and IRIDIUM FUNDO
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BTG and IRIDIUM is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and IRIDIUM FUNDO DE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IRIDIUM FUNDO DE 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 IRIDIUM FUNDO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IRIDIUM FUNDO DE has no effect on the direction of BTG Pactual i.e., BTG Pactual and IRIDIUM FUNDO go up and down completely randomly.
Pair Corralation between BTG Pactual and IRIDIUM FUNDO
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to under-perform the IRIDIUM FUNDO. In addition to that, BTG Pactual is 1.03 times more volatile than IRIDIUM FUNDO DE. It trades about -0.06 of its total potential returns per unit of risk. IRIDIUM FUNDO DE is currently generating about -0.01 per unit of volatility. If you would invest 6,800 in IRIDIUM FUNDO DE on August 30, 2024 and sell it today you would lose (19.00) from holding IRIDIUM FUNDO DE or give up 0.28% 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. IRIDIUM FUNDO DE
Performance |
| Timeline |
| BTG Pactual Logstica |
| IRIDIUM FUNDO DE |
BTG Pactual and IRIDIUM FUNDO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and IRIDIUM FUNDO
The main advantage of trading using opposite BTG Pactual and IRIDIUM FUNDO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, IRIDIUM FUNDO 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 IRIDIUM FUNDO will offset losses from the drop in IRIDIUM FUNDO'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 |
| IRIDIUM FUNDO vs. Domo Fundo de | IRIDIUM FUNDO vs. Aesapar Fundo de | IRIDIUM FUNDO vs. Ourinvest Jpp Fundo | IRIDIUM FUNDO vs. Loft II Fundo |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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