Correlation Between BTG Pactual and Moodys
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Moodys 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 Moodys 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 Moodys, you can compare the effects of market volatilities on BTG Pactual and Moodys 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 Moodys. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Moodys.
Diversification Opportunities for BTG Pactual and Moodys
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BTG and Moodys is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Moodys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moodys 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 Moodys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moodys has no effect on the direction of BTG Pactual i.e., BTG Pactual and Moodys go up and down completely randomly.
Pair Corralation between BTG Pactual and Moodys
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to under-perform the Moodys. But the fund apears to be less risky and, when comparing its historical volatility, BTG Pactual Logstica is 3.0 times less risky than Moodys. The fund trades about -0.16 of its potential returns per unit of risk. The Moodys is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 66,200 in Moodys on September 2, 2024 and sell it today you would earn a total of 9,250 from holding Moodys or generate 13.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Moodys
Performance |
| Timeline |
| BTG Pactual Logstica |
| Moodys |
BTG Pactual and Moodys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Moodys
The main advantage of trading using opposite BTG Pactual and Moodys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Moodys 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 Moodys will offset losses from the drop in Moodys' 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 |
| Moodys vs. B3 SA | Moodys vs. Energisa SA | Moodys vs. BTG Pactual Logstica | Moodys vs. Plano Plano Desenvolvimento |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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