Correlation Between Fundo De and BTG Pactual
Can any of the company-specific risk be diversified away by investing in both Fundo De 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 Fundo De and BTG Pactual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fundo De Investimento and BTG Pactual Logstica, you can compare the effects of market volatilities on Fundo De 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 Fundo De with a short position of BTG Pactual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundo De and BTG Pactual.
Diversification Opportunities for Fundo De and BTG Pactual
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fundo and BTG is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Fundo De Investimento 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 Fundo De 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 Fundo De Investimento 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 Fundo De i.e., Fundo De and BTG Pactual go up and down completely randomly.
Pair Corralation between Fundo De and BTG Pactual
Assuming the 90 days trading horizon Fundo De Investimento is expected to under-perform the BTG Pactual. In addition to that, Fundo De is 7.76 times more volatile than BTG Pactual Logstica. It trades about -0.05 of its total potential returns per unit of risk. BTG Pactual Logstica is currently generating about 0.02 per unit of volatility. If you would invest 9,228 in BTG Pactual Logstica on August 31, 2024 and sell it today you would earn a total of 272.00 from holding BTG Pactual Logstica or generate 2.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fundo De Investimento vs. BTG Pactual Logstica
Performance |
| Timeline |
| Fundo De Investimento |
| BTG Pactual Logstica |
Fundo De and BTG Pactual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fundo De and BTG Pactual
The main advantage of trading using opposite Fundo De and BTG Pactual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fundo De 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.| Fundo De vs. Fundo De Investimentos | Fundo De vs. Fundo Invest Imobiliario | Fundo De vs. Fundo de Investimento | Fundo De vs. Fundo Investec IMB |
| BTG Pactual vs. BTG Pactual Teva | BTG Pactual vs. BTG PACTUAL CRDITO | BTG Pactual vs. Real Estate Investment | BTG Pactual vs. NAVI CRDITO IMOBILIRIO |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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