Correlation Between BTG Pactual and Lam Research
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Lam Research 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 Lam Research 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 Lam Research, you can compare the effects of market volatilities on BTG Pactual and Lam Research 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 Lam Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Lam Research.
Diversification Opportunities for BTG Pactual and Lam Research
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between BTG and Lam is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Lam Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lam Research 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 Lam Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lam Research has no effect on the direction of BTG Pactual i.e., BTG Pactual and Lam Research go up and down completely randomly.
Pair Corralation between BTG Pactual and Lam Research
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to under-perform the Lam Research. But the fund apears to be less risky and, when comparing its historical volatility, BTG Pactual Logstica is 246.22 times less risky than Lam Research. The fund trades about -0.06 of its potential returns per unit of risk. The Lam Research is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,106 in Lam Research on September 3, 2024 and sell it today you would lose (23.00) from holding Lam Research or give up 2.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Lam Research
Performance |
| Timeline |
| BTG Pactual Logstica |
| Lam Research |
BTG Pactual and Lam Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Lam Research
The main advantage of trading using opposite BTG Pactual and Lam Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Lam Research 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 Lam Research will offset losses from the drop in Lam Research'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 |
| Lam Research vs. ASML Holding NV | Lam Research vs. KLA Corporation | Lam Research vs. Energisa SA | Lam Research vs. BTG Pactual Logstica |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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