Correlation Between BTG Pactual and XP Hoteis
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and XP Hoteis 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 XP Hoteis 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 XP Hoteis Fundo, you can compare the effects of market volatilities on BTG Pactual and XP Hoteis 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 XP Hoteis. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and XP Hoteis.
Diversification Opportunities for BTG Pactual and XP Hoteis
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BTG and XPHT11 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and XP Hoteis Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XP Hoteis 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 XP Hoteis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XP Hoteis Fundo has no effect on the direction of BTG Pactual i.e., BTG Pactual and XP Hoteis go up and down completely randomly.
Pair Corralation between BTG Pactual and XP Hoteis
If you would invest 12,300 in XP Hoteis Fundo on September 15, 2024 and sell it today you would earn a total of 0.00 from holding XP Hoteis Fundo or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Pactual Logstica vs. XP Hoteis Fundo
Performance |
| Timeline |
| BTG Pactual Logstica |
| XP Hoteis Fundo |
BTG Pactual and XP Hoteis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and XP Hoteis
The main advantage of trading using opposite BTG Pactual and XP Hoteis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, XP Hoteis 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 XP Hoteis will offset losses from the drop in XP Hoteis' long position.| BTG Pactual vs. Ourinvest Jpp Fundo | BTG Pactual vs. FUNDO DE INVESTIMENTO | BTG Pactual vs. Riza Akin Fundo | BTG Pactual vs. XP Selection Fundo |
| XP Hoteis vs. Domo Fundo de | XP Hoteis vs. Aesapar Fundo de | XP Hoteis vs. FUNDO DE INVESTIMENTO | XP Hoteis vs. Ourinvest Jpp Fundo |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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