Correlation Between BTG Pactual and Technos SA
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Technos SA 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 Technos SA 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 Technos SA, you can compare the effects of market volatilities on BTG Pactual and Technos SA 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 Technos SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Technos SA.
Diversification Opportunities for BTG Pactual and Technos SA
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BTG and Technos is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Technos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Technos 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 Technos SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Technos SA has no effect on the direction of BTG Pactual i.e., BTG Pactual and Technos SA go up and down completely randomly.
Pair Corralation between BTG Pactual and Technos SA
Assuming the 90 days trading horizon BTG Pactual is expected to generate 22.74 times less return on investment than Technos SA. But when comparing it to its historical volatility, BTG Pactual Logstica is 4.4 times less risky than Technos SA. It trades about 0.02 of its potential returns per unit of risk. Technos SA is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 198.00 in Technos SA on September 2, 2024 and sell it today you would earn a total of 392.00 from holding Technos SA or generate 197.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Technos SA
Performance |
| Timeline |
| BTG Pactual Logstica |
| Technos SA |
BTG Pactual and Technos SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Technos SA
The main advantage of trading using opposite BTG Pactual and Technos SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Technos SA 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 Technos SA will offset losses from the drop in Technos SA's long position.| BTG Pactual vs. Plano Plano Desenvolvimento | BTG Pactual vs. Cable One | BTG Pactual vs. ATMA Participaes SA | BTG Pactual vs. British American Tobacco |
| Technos SA vs. Engie Brasil Energia | Technos SA vs. Energisa SA | Technos SA vs. Clave Indices De | Technos SA 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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