Correlation Between BTG Pactual and Marcopolo
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Marcopolo 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 Marcopolo 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 Marcopolo SA, you can compare the effects of market volatilities on BTG Pactual and Marcopolo 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 Marcopolo. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Marcopolo.
Diversification Opportunities for BTG Pactual and Marcopolo
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BTG and Marcopolo is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Marcopolo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marcopolo SA 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 Marcopolo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marcopolo SA has no effect on the direction of BTG Pactual i.e., BTG Pactual and Marcopolo go up and down completely randomly.
Pair Corralation between BTG Pactual and Marcopolo
Assuming the 90 days trading horizon BTG Pactual is expected to generate 36.4 times less return on investment than Marcopolo. But when comparing it to its historical volatility, BTG Pactual Logstica is 2.71 times less risky than Marcopolo. It trades about 0.02 of its potential returns per unit of risk. Marcopolo SA is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 843.00 in Marcopolo SA on August 29, 2024 and sell it today you would earn a total of 116.00 from holding Marcopolo SA or generate 13.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Marcopolo SA
Performance |
| Timeline |
| BTG Pactual Logstica |
| Marcopolo SA |
BTG Pactual and Marcopolo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Marcopolo
The main advantage of trading using opposite BTG Pactual and Marcopolo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Marcopolo 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 Marcopolo will offset losses from the drop in Marcopolo'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 |
| Marcopolo vs. Fras le SA | Marcopolo vs. Indstrias Romi SA | Marcopolo vs. Clave Indices De | Marcopolo 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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