Correlation Between BTG Pactual and Schlumberger
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Schlumberger 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 Schlumberger 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 Schlumberger Limited, you can compare the effects of market volatilities on BTG Pactual and Schlumberger 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 Schlumberger. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Schlumberger.
Diversification Opportunities for BTG Pactual and Schlumberger
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between BTG and Schlumberger is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Schlumberger Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schlumberger Limited 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 Schlumberger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schlumberger Limited has no effect on the direction of BTG Pactual i.e., BTG Pactual and Schlumberger go up and down completely randomly.
Pair Corralation between BTG Pactual and Schlumberger
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to generate 0.82 times more return on investment than Schlumberger. However, BTG Pactual Logstica is 1.23 times less risky than Schlumberger. It trades about 0.19 of its potential returns per unit of risk. Schlumberger Limited is currently generating about -0.14 per unit of risk. If you would invest 8,923 in BTG Pactual Logstica on October 12, 2024 and sell it today you would earn a total of 511.00 from holding BTG Pactual Logstica or generate 5.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Schlumberger Limited
Performance |
| Timeline |
| BTG Pactual Logstica |
| Schlumberger Limited |
BTG Pactual and Schlumberger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Schlumberger
The main advantage of trading using opposite BTG Pactual and Schlumberger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Schlumberger 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 Schlumberger will offset losses from the drop in Schlumberger's long position.| BTG Pactual vs. Plano Plano Desenvolvimento | BTG Pactual vs. Gen Digital | BTG Pactual vs. Cable One | BTG Pactual vs. ATMA Participaes SA |
| Schlumberger vs. Multilaser Industrial SA | Schlumberger vs. Automatic Data Processing | Schlumberger vs. METISA Metalrgica Timboense | Schlumberger vs. Tres Tentos Agroindustrial |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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