Correlation Between BTG Pactual and JS Real
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and JS Real 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 Real 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 Real Estate, you can compare the effects of market volatilities on BTG Pactual and JS Real 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 Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and JS Real.
Diversification Opportunities for BTG Pactual and JS Real
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BTG and JSRE11 is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and JS Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JS Real Estate 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 Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JS Real Estate has no effect on the direction of BTG Pactual i.e., BTG Pactual and JS Real go up and down completely randomly.
Pair Corralation between BTG Pactual and JS Real
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to generate 0.57 times more return on investment than JS Real. However, BTG Pactual Logstica is 1.75 times less risky than JS Real. It trades about 0.02 of its potential returns per unit of risk. JS Real Estate is currently generating about -0.02 per unit of risk. If you would invest 9,073 in BTG Pactual Logstica on September 2, 2024 and sell it today you would earn a total of 427.00 from holding BTG Pactual Logstica or generate 4.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Pactual Logstica vs. JS Real Estate
Performance |
| Timeline |
| BTG Pactual Logstica |
| JS Real Estate |
BTG Pactual and JS Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and JS Real
The main advantage of trading using opposite BTG Pactual and JS Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, JS Real 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 Real will offset losses from the drop in JS Real'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 |
| JS Real vs. Energisa SA | JS Real vs. BTG Pactual Logstica | JS Real vs. Plano Plano Desenvolvimento | JS Real 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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