Correlation Between BTG Pactual and Kinea High
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Kinea High 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 High 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 High Yield, you can compare the effects of market volatilities on BTG Pactual and Kinea High 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 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Kinea High.
Diversification Opportunities for BTG Pactual and Kinea High
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BTG and Kinea is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Kinea High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinea High Yield 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 High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinea High Yield has no effect on the direction of BTG Pactual i.e., BTG Pactual and Kinea High go up and down completely randomly.
Pair Corralation between BTG Pactual and Kinea High
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to under-perform the Kinea High. In addition to that, BTG Pactual is 1.94 times more volatile than Kinea High Yield. It trades about -0.16 of its total potential returns per unit of risk. Kinea High Yield is currently generating about 0.07 per unit of volatility. If you would invest 10,193 in Kinea High Yield on September 2, 2024 and sell it today you would earn a total of 46.00 from holding Kinea High Yield or generate 0.45% 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 High Yield
Performance |
| Timeline |
| BTG Pactual Logstica |
| Kinea High Yield |
BTG Pactual and Kinea High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Kinea High
The main advantage of trading using opposite BTG Pactual and Kinea High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Kinea High 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 High will offset losses from the drop in Kinea High'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 |
| Kinea High vs. Energisa SA | Kinea High vs. BTG Pactual Logstica | Kinea High vs. Plano Plano Desenvolvimento | Kinea High 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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