Correlation Between SPARTA FIAGRO and BTG Pactual
Can any of the company-specific risk be diversified away by investing in both SPARTA FIAGRO and BTG Pactual 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 SPARTA FIAGRO and BTG Pactual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPARTA FIAGRO FDO and BTG Pactual Logstica, you can compare the effects of market volatilities on SPARTA FIAGRO 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 SPARTA FIAGRO with a short position of BTG Pactual. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPARTA FIAGRO and BTG Pactual.
Diversification Opportunities for SPARTA FIAGRO and BTG Pactual
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPARTA and BTG is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding SPARTA FIAGRO FDO and BTG Pactual Logstica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTG Pactual Logstica and SPARTA FIAGRO 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 SPARTA FIAGRO FDO 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 Logstica has no effect on the direction of SPARTA FIAGRO i.e., SPARTA FIAGRO and BTG Pactual go up and down completely randomly.
Pair Corralation between SPARTA FIAGRO and BTG Pactual
Assuming the 90 days trading horizon SPARTA FIAGRO is expected to generate 4.48 times less return on investment than BTG Pactual. In addition to that, SPARTA FIAGRO is 1.34 times more volatile than BTG Pactual Logstica. It trades about 0.02 of its total potential returns per unit of risk. BTG Pactual Logstica is currently generating about 0.12 per unit of volatility. If you would invest 9,540 in BTG Pactual Logstica on August 26, 2024 and sell it today you would earn a total of 168.00 from holding BTG Pactual Logstica or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPARTA FIAGRO FDO vs. BTG Pactual Logstica
Performance |
| Timeline |
| SPARTA FIAGRO FDO |
| BTG Pactual Logstica |
SPARTA FIAGRO and BTG Pactual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPARTA FIAGRO and BTG Pactual
The main advantage of trading using opposite SPARTA FIAGRO and BTG Pactual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPARTA FIAGRO 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.| SPARTA FIAGRO vs. BTG Pactual Logstica | SPARTA FIAGRO vs. Fundo Investimento Imobiliario | SPARTA FIAGRO vs. KILIMA VOLKANO RECEBVEIS | SPARTA FIAGRO vs. Santander Renda De |
| BTG Pactual vs. Fundo Investimento Imobiliario | BTG Pactual vs. KILIMA VOLKANO RECEBVEIS | BTG Pactual vs. Santander Renda De | BTG Pactual vs. DEVANT PROPERTIES 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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