Correlation Between BTG Pactual and SP Global
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and SP Global 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 SP Global 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 SP Global, you can compare the effects of market volatilities on BTG Pactual and SP Global 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 SP Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and SP Global.
Diversification Opportunities for BTG Pactual and SP Global
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BTG and SPGI34 is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and SP Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SP Global 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 SP Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SP Global has no effect on the direction of BTG Pactual i.e., BTG Pactual and SP Global go up and down completely randomly.
Pair Corralation between BTG Pactual and SP Global
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to under-perform the SP Global. But the fund apears to be less risky and, when comparing its historical volatility, BTG Pactual Logstica is 1.42 times less risky than SP Global. The fund trades about -0.17 of its potential returns per unit of risk. The SP Global is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 8,079 in SP Global on September 13, 2024 and sell it today you would earn a total of 489.00 from holding SP Global or generate 6.05% 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. SP Global
Performance |
| Timeline |
| BTG Pactual Logstica |
| SP Global |
BTG Pactual and SP Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and SP Global
The main advantage of trading using opposite BTG Pactual and SP Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, SP Global 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 SP Global will offset losses from the drop in SP Global'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 |
| SP Global vs. MSCI Inc | SP Global vs. B3 SA | SP Global vs. Energisa SA | SP Global 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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