Correlation Between BTG Pactual and Paycom Software
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Paycom Software 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 Paycom Software 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 Paycom Software, you can compare the effects of market volatilities on BTG Pactual and Paycom Software 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 Paycom Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Paycom Software.
Diversification Opportunities for BTG Pactual and Paycom Software
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BTG and Paycom is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Paycom Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paycom Software 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 Paycom Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paycom Software has no effect on the direction of BTG Pactual i.e., BTG Pactual and Paycom Software go up and down completely randomly.
Pair Corralation between BTG Pactual and Paycom Software
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to under-perform the Paycom Software. But the fund apears to be less risky and, when comparing its historical volatility, BTG Pactual Logstica is 4.78 times less risky than Paycom Software. The fund trades about -0.06 of its potential returns per unit of risk. The Paycom Software is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,889 in Paycom Software on September 1, 2024 and sell it today you would earn a total of 1,708 from holding Paycom Software or generate 59.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.66% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Paycom Software
Performance |
| Timeline |
| BTG Pactual Logstica |
| Paycom Software |
BTG Pactual and Paycom Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Paycom Software
The main advantage of trading using opposite BTG Pactual and Paycom Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Paycom Software 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 Paycom Software will offset losses from the drop in Paycom Software'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 |
| Paycom Software vs. Mliuz SA | Paycom Software vs. Bemobi Mobile Tech | Paycom Software vs. Fras le SA | Paycom Software vs. Energisa SA |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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