Correlation Between BTG Pactual and Hospital Mater
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Hospital Mater 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 Hospital Mater 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 Hospital Mater Dei, you can compare the effects of market volatilities on BTG Pactual and Hospital Mater 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 Hospital Mater. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Hospital Mater.
Diversification Opportunities for BTG Pactual and Hospital Mater
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BTG and Hospital is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Hospital Mater Dei in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hospital Mater Dei 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 Hospital Mater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hospital Mater Dei has no effect on the direction of BTG Pactual i.e., BTG Pactual and Hospital Mater go up and down completely randomly.
Pair Corralation between BTG Pactual and Hospital Mater
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to generate 0.26 times more return on investment than Hospital Mater. However, BTG Pactual Logstica is 3.87 times less risky than Hospital Mater. It trades about 0.02 of its potential returns per unit of risk. Hospital Mater Dei is currently generating about -0.02 per unit of risk. If you would invest 9,118 in BTG Pactual Logstica on August 30, 2024 and sell it today you would earn a total of 494.00 from holding BTG Pactual Logstica or generate 5.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Hospital Mater Dei
Performance |
| Timeline |
| BTG Pactual Logstica |
| Hospital Mater Dei |
BTG Pactual and Hospital Mater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Hospital Mater
The main advantage of trading using opposite BTG Pactual and Hospital Mater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Hospital Mater 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 Hospital Mater will offset losses from the drop in Hospital Mater's long position.| BTG Pactual vs. BTG Pactual Teva | BTG Pactual vs. BTG PACTUAL CRDITO | BTG Pactual vs. Real Estate Investment | BTG Pactual vs. NAVI CRDITO IMOBILIRIO |
| Hospital Mater vs. Charter Communications | Hospital Mater vs. Metalrgica Riosulense SA | Hospital Mater vs. Healthpeak Properties | Hospital Mater vs. Lloyds Banking Group |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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