Correlation Between BTG Pactual and Xp Malls
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Xp Malls 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 Malls 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 Malls Fundo, you can compare the effects of market volatilities on BTG Pactual and Xp Malls 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 Malls. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Xp Malls.
Diversification Opportunities for BTG Pactual and Xp Malls
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BTG and XPML11 is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Xp Malls Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xp Malls 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 Malls. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xp Malls Fundo has no effect on the direction of BTG Pactual i.e., BTG Pactual and Xp Malls go up and down completely randomly.
Pair Corralation between BTG Pactual and Xp Malls
Assuming the 90 days trading horizon BTG Pactual is expected to generate 1.84 times less return on investment than Xp Malls. But when comparing it to its historical volatility, BTG Pactual Logstica is 1.17 times less risky than Xp Malls. It trades about 0.02 of its potential returns per unit of risk. Xp Malls Fundo is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 9,208 in Xp Malls Fundo on August 30, 2024 and sell it today you would earn a total of 992.00 from holding Xp Malls Fundo or generate 10.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Xp Malls Fundo
Performance |
| Timeline |
| BTG Pactual Logstica |
| Xp Malls Fundo |
BTG Pactual and Xp Malls Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Xp Malls
The main advantage of trading using opposite BTG Pactual and Xp Malls positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Xp Malls 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 Malls will offset losses from the drop in Xp Malls' long position.| BTG Pactual vs. BTG Pactual Teva | BTG Pactual vs. BTG PACTUAL CRDITO | BTG Pactual vs. Real Estate Investment | BTG Pactual vs. NAVI CRDITO IMOBILIRIO |
| Xp Malls vs. ASA METROPOLIS FUNDO | Xp Malls vs. BB Renda Corporativa | Xp Malls vs. FUNDO DE INVESTIMENTO | Xp Malls vs. Legatus Shoppings 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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