Correlation Between MBI Administradora and BTG Pactual
Specify exactly 2 symbols:
By analyzing existing cross correlation between MBI Administradora General and BTG Pactual Chile, you can compare the effects of market volatilities on MBI Administradora and BTG Pactual 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 MBI Administradora with a short position of BTG Pactual. Check out your portfolio center. Please also check ongoing floating volatility patterns of MBI Administradora and BTG Pactual.
Diversification Opportunities for MBI Administradora and BTG Pactual
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MBI and BTG is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding MBI Administradora General and BTG Pactual Chile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTG Pactual Chile and MBI Administradora 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 MBI Administradora General are associated (or correlated) with BTG Pactual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTG Pactual Chile has no effect on the direction of MBI Administradora i.e., MBI Administradora and BTG Pactual go up and down completely randomly.
Pair Corralation between MBI Administradora and BTG Pactual
Assuming the 90 days trading horizon MBI Administradora General is expected to generate 2.54 times more return on investment than BTG Pactual. However, MBI Administradora is 2.54 times more volatile than BTG Pactual Chile. It trades about 0.22 of its potential returns per unit of risk. BTG Pactual Chile is currently generating about 0.22 per unit of risk. If you would invest 2,467,984 in MBI Administradora General on August 24, 2024 and sell it today you would earn a total of 167,020 from holding MBI Administradora General or generate 6.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
MBI Administradora General vs. BTG Pactual Chile
Performance |
| Timeline |
| MBI Administradora |
| BTG Pactual Chile |
MBI Administradora and BTG Pactual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MBI Administradora and BTG Pactual
The main advantage of trading using opposite MBI Administradora and BTG Pactual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MBI Administradora position performs unexpectedly, BTG Pactual 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 BTG Pactual will offset losses from the drop in BTG Pactual's long position.| MBI Administradora vs. Salfacorp | MBI Administradora vs. Vina Concha To | MBI Administradora vs. HMC SA ADMINISTRADORA | MBI Administradora vs. Multiexport Foods SA |
| BTG Pactual vs. MBI Administradora General | BTG Pactual vs. HMC SA ADMINISTRADORA | BTG Pactual vs. Weg ADM General |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Stocks Directory Find actively traded stocks across global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |