Correlation Between BTG Pactual and METISA Metalrgica
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and METISA Metalrgica 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 METISA Metalrgica 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 METISA Metalrgica Timboense, you can compare the effects of market volatilities on BTG Pactual and METISA Metalrgica 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 METISA Metalrgica. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and METISA Metalrgica.
Diversification Opportunities for BTG Pactual and METISA Metalrgica
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BTG and METISA is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and METISA Metalrgica Timboense in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on METISA Metalrgica 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 METISA Metalrgica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of METISA Metalrgica has no effect on the direction of BTG Pactual i.e., BTG Pactual and METISA Metalrgica go up and down completely randomly.
Pair Corralation between BTG Pactual and METISA Metalrgica
Assuming the 90 days trading horizon BTG Pactual is expected to generate 2.09 times less return on investment than METISA Metalrgica. But when comparing it to its historical volatility, BTG Pactual Logstica is 3.43 times less risky than METISA Metalrgica. It trades about 0.02 of its potential returns per unit of risk. METISA Metalrgica Timboense is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,595 in METISA Metalrgica Timboense on August 29, 2024 and sell it today you would earn a total of 5.00 from holding METISA Metalrgica Timboense or generate 0.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Pactual Logstica vs. METISA Metalrgica Timboense
Performance |
| Timeline |
| BTG Pactual Logstica |
| METISA Metalrgica |
BTG Pactual and METISA Metalrgica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and METISA Metalrgica
The main advantage of trading using opposite BTG Pactual and METISA Metalrgica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, METISA Metalrgica 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 METISA Metalrgica will offset losses from the drop in METISA Metalrgica's 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 |
| METISA Metalrgica vs. Fras le SA | METISA Metalrgica vs. Indstrias Romi SA | METISA Metalrgica vs. Clave Indices De | METISA Metalrgica 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |