Correlation Between BTG Pactual and PANORAMA REAL
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and PANORAMA REAL 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 PANORAMA REAL 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 PANORAMA REAL ESTATE, you can compare the effects of market volatilities on BTG Pactual and PANORAMA REAL 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 PANORAMA REAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and PANORAMA REAL.
Diversification Opportunities for BTG Pactual and PANORAMA REAL
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BTG and PANORAMA is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and PANORAMA REAL ESTATE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PANORAMA REAL ESTATE 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 PANORAMA REAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PANORAMA REAL ESTATE has no effect on the direction of BTG Pactual i.e., BTG Pactual and PANORAMA REAL go up and down completely randomly.
Pair Corralation between BTG Pactual and PANORAMA REAL
Assuming the 90 days trading horizon BTG Pactual is expected to generate 10.29 times less return on investment than PANORAMA REAL. But when comparing it to its historical volatility, BTG Pactual Logstica is 1.86 times less risky than PANORAMA REAL. It trades about 0.02 of its potential returns per unit of risk. PANORAMA REAL ESTATE is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 6,426 in PANORAMA REAL ESTATE on November 2, 2024 and sell it today you would earn a total of 4,169 from holding PANORAMA REAL ESTATE or generate 64.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 79.19% |
| Values | Daily Returns |
BTG Pactual Logstica vs. PANORAMA REAL ESTATE
Performance |
| Timeline |
| BTG Pactual Logstica |
| PANORAMA REAL ESTATE |
BTG Pactual and PANORAMA REAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and PANORAMA REAL
The main advantage of trading using opposite BTG Pactual and PANORAMA REAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, PANORAMA REAL 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 PANORAMA REAL will offset losses from the drop in PANORAMA REAL's long position.| BTG Pactual vs. BTG Pactual Teva | BTG Pactual vs. BTG PACTUAL CRDITO | BTG Pactual vs. FDO INV IMOB | BTG Pactual vs. SUPREMO FUNDO DE |
| PANORAMA REAL vs. Real Estate Investment | PANORAMA REAL vs. Trx Real Estate | PANORAMA REAL vs. Brio Real Estate | PANORAMA REAL vs. ZAVIT REAL ESTATE |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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