Correlation Between BTG Pactual and Scp Fundo
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Scp Fundo 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 Scp Fundo 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 Scp Fundo De, you can compare the effects of market volatilities on BTG Pactual and Scp Fundo 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 Scp Fundo. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Scp Fundo.
Diversification Opportunities for BTG Pactual and Scp Fundo
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BTG and Scp is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Scp Fundo De in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scp Fundo De 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 Scp Fundo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scp Fundo De has no effect on the direction of BTG Pactual i.e., BTG Pactual and Scp Fundo go up and down completely randomly.
Pair Corralation between BTG Pactual and Scp Fundo
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to under-perform the Scp Fundo. But the fund apears to be less risky and, when comparing its historical volatility, BTG Pactual Logstica is 2.61 times less risky than Scp Fundo. The fund trades about -0.15 of its potential returns per unit of risk. The Scp Fundo De is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 194.00 in Scp Fundo De on October 29, 2024 and sell it today you would lose (2.00) from holding Scp Fundo De or give up 1.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Scp Fundo De
Performance |
| Timeline |
| BTG Pactual Logstica |
| Scp Fundo De |
BTG Pactual and Scp Fundo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Scp Fundo
The main advantage of trading using opposite BTG Pactual and Scp Fundo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Scp Fundo 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 Scp Fundo will offset losses from the drop in Scp Fundo's long position.| BTG Pactual vs. Btg Pactual Real | BTG Pactual vs. Fundo Investimento Imobiliario | BTG Pactual vs. KILIMA VOLKANO RECEBVEIS | BTG Pactual vs. DEVANT PROPERTIES FUNDO |
| Scp Fundo vs. Energisa SA | Scp Fundo vs. BTG Pactual Logstica | Scp Fundo vs. Plano Plano Desenvolvimento | Scp Fundo vs. Ares Management |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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