Correlation Between BTG Pactual and Kinea Rendimentos
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Kinea Rendimentos 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 Kinea Rendimentos 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 Kinea Rendimentos Imobilirios, you can compare the effects of market volatilities on BTG Pactual and Kinea Rendimentos 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 Kinea Rendimentos. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Kinea Rendimentos.
Diversification Opportunities for BTG Pactual and Kinea Rendimentos
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BTG and Kinea is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Kinea Rendimentos Imobilirios in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinea Rendimentos 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 Kinea Rendimentos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinea Rendimentos has no effect on the direction of BTG Pactual i.e., BTG Pactual and Kinea Rendimentos go up and down completely randomly.
Pair Corralation between BTG Pactual and Kinea Rendimentos
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to generate 1.66 times more return on investment than Kinea Rendimentos. However, BTG Pactual is 1.66 times more volatile than Kinea Rendimentos Imobilirios. It trades about 0.12 of its potential returns per unit of risk. Kinea Rendimentos Imobilirios is currently generating about -0.03 per unit of risk. If you would invest 9,540 in BTG Pactual Logstica on August 26, 2024 and sell it today you would earn a total of 168.00 from holding BTG Pactual Logstica or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Kinea Rendimentos Imobilirios
Performance |
| Timeline |
| BTG Pactual Logstica |
| Kinea Rendimentos |
BTG Pactual and Kinea Rendimentos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Kinea Rendimentos
The main advantage of trading using opposite BTG Pactual and Kinea Rendimentos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Kinea Rendimentos 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 Kinea Rendimentos will offset losses from the drop in Kinea Rendimentos' long position.| BTG Pactual vs. Fundo Investimento Imobiliario | BTG Pactual vs. KILIMA VOLKANO RECEBVEIS | BTG Pactual vs. Santander Renda De | BTG Pactual vs. DEVANT PROPERTIES FUNDO |
| Kinea Rendimentos vs. BTG Pactual Logstica | Kinea Rendimentos vs. Plano Plano Desenvolvimento | Kinea Rendimentos vs. Companhia Habitasul de | Kinea Rendimentos vs. The Procter Gamble |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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