Correlation Between BTG Pactual and JS ATIVOS
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and JS ATIVOS 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 JS ATIVOS 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 JS ATIVOS FINANCEIROS, you can compare the effects of market volatilities on BTG Pactual and JS ATIVOS 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 JS ATIVOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and JS ATIVOS.
Diversification Opportunities for BTG Pactual and JS ATIVOS
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BTG and JSAF11 is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and JS ATIVOS FINANCEIROS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JS ATIVOS FINANCEIROS 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 JS ATIVOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JS ATIVOS FINANCEIROS has no effect on the direction of BTG Pactual i.e., BTG Pactual and JS ATIVOS go up and down completely randomly.
Pair Corralation between BTG Pactual and JS ATIVOS
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to generate 0.66 times more return on investment than JS ATIVOS. However, BTG Pactual Logstica is 1.52 times less risky than JS ATIVOS. It trades about -0.07 of its potential returns per unit of risk. JS ATIVOS FINANCEIROS is currently generating about -0.18 per unit of risk. If you would invest 10,212 in BTG Pactual Logstica on November 2, 2024 and sell it today you would lose (923.00) from holding BTG Pactual Logstica or give up 9.04% 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. JS ATIVOS FINANCEIROS
Performance |
| Timeline |
| BTG Pactual Logstica |
| JS ATIVOS FINANCEIROS |
BTG Pactual and JS ATIVOS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and JS ATIVOS
The main advantage of trading using opposite BTG Pactual and JS ATIVOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, JS ATIVOS 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 JS ATIVOS will offset losses from the drop in JS ATIVOS's long position.| BTG Pactual vs. Btg Pactual Real | BTG Pactual vs. Fundo Investimento Imobiliario | BTG Pactual vs. KILIMA VOLKANO RECEBVEIS | BTG Pactual vs. DEVANT PROPERTIES FUNDO |
| JS ATIVOS vs. Energisa SA | JS ATIVOS vs. BTG Pactual Logstica | JS ATIVOS vs. Plano Plano Desenvolvimento | JS ATIVOS vs. Ares Management |
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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