Correlation Between BTG Pactual and Hospital Nossa
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Hospital Nossa 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 Nossa 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 Nossa Senhora, you can compare the effects of market volatilities on BTG Pactual and Hospital Nossa 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 Nossa. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Hospital Nossa.
Diversification Opportunities for BTG Pactual and Hospital Nossa
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BTG and Hospital is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Hospital Nossa Senhora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hospital Nossa Senhora 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 Nossa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hospital Nossa Senhora has no effect on the direction of BTG Pactual i.e., BTG Pactual and Hospital Nossa go up and down completely randomly.
Pair Corralation between BTG Pactual and Hospital Nossa
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to generate 0.89 times more return on investment than Hospital Nossa. However, BTG Pactual Logstica is 1.13 times less risky than Hospital Nossa. It trades about -0.04 of its potential returns per unit of risk. Hospital Nossa Senhora is currently generating about -0.07 per unit of risk. If you would invest 9,597 in BTG Pactual Logstica on September 19, 2024 and sell it today you would lose (509.00) from holding BTG Pactual Logstica or give up 5.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.43% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Hospital Nossa Senhora
Performance |
| Timeline |
| BTG Pactual Logstica |
| Hospital Nossa Senhora |
BTG Pactual and Hospital Nossa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Hospital Nossa
The main advantage of trading using opposite BTG Pactual and Hospital Nossa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Hospital Nossa 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 Nossa will offset losses from the drop in Hospital Nossa'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 |
| Hospital Nossa vs. Maxi Renda Fundo | Hospital Nossa vs. Scp Fundo De | Hospital Nossa vs. EXES FUNDO DE | Hospital Nossa vs. TRX Renda Fundo |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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