Correlation Between BTG Pactual and Vinci Energia
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Vinci Energia 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 Vinci Energia 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 Vinci Energia Fundo, you can compare the effects of market volatilities on BTG Pactual and Vinci Energia 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 Vinci Energia. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Vinci Energia.
Diversification Opportunities for BTG Pactual and Vinci Energia
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BTG and Vinci is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Vinci Energia Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vinci Energia Fundo 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 Vinci Energia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vinci Energia Fundo has no effect on the direction of BTG Pactual i.e., BTG Pactual and Vinci Energia go up and down completely randomly.
Pair Corralation between BTG Pactual and Vinci Energia
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to generate 0.08 times more return on investment than Vinci Energia. However, BTG Pactual Logstica is 13.04 times less risky than Vinci Energia. It trades about -0.16 of its potential returns per unit of risk. Vinci Energia Fundo is currently generating about -0.24 per unit of risk. If you would invest 9,718 in BTG Pactual Logstica on September 2, 2024 and sell it today you would lose (218.00) from holding BTG Pactual Logstica or give up 2.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Vinci Energia Fundo
Performance |
| Timeline |
| BTG Pactual Logstica |
| Vinci Energia Fundo |
BTG Pactual and Vinci Energia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Vinci Energia
The main advantage of trading using opposite BTG Pactual and Vinci Energia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Vinci Energia 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 Vinci Energia will offset losses from the drop in Vinci Energia'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 |
| Vinci Energia vs. Vinci Logistica Fundo | Vinci Energia vs. RB Capital Office | Vinci Energia vs. Ishares Msci Brazil | Vinci Energia vs. Investo Etf Global |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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