Correlation Between G2D Investments and Banco BTG
Can any of the company-specific risk be diversified away by investing in both G2D Investments and Banco BTG 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 G2D Investments and Banco BTG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G2D Investments and Banco BTG Pactual, you can compare the effects of market volatilities on G2D Investments and Banco BTG 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 G2D Investments with a short position of Banco BTG. Check out your portfolio center. Please also check ongoing floating volatility patterns of G2D Investments and Banco BTG.
Diversification Opportunities for G2D Investments and Banco BTG
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between G2D and Banco is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding G2D Investments and Banco BTG Pactual in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco BTG Pactual and G2D Investments 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 G2D Investments are associated (or correlated) with Banco BTG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco BTG Pactual has no effect on the direction of G2D Investments i.e., G2D Investments and Banco BTG go up and down completely randomly.
Pair Corralation between G2D Investments and Banco BTG
Assuming the 90 days trading horizon G2D Investments is expected to generate 1.36 times more return on investment than Banco BTG. However, G2D Investments is 1.36 times more volatile than Banco BTG Pactual. It trades about 0.02 of its potential returns per unit of risk. Banco BTG Pactual is currently generating about 0.0 per unit of risk. If you would invest 197.00 in G2D Investments on September 2, 2024 and sell it today you would earn a total of 8.00 from holding G2D Investments or generate 4.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
G2D Investments vs. Banco BTG Pactual
Performance |
| Timeline |
| G2D Investments |
| Banco BTG Pactual |
G2D Investments and Banco BTG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G2D Investments and Banco BTG
The main advantage of trading using opposite G2D Investments and Banco BTG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G2D Investments position performs unexpectedly, Banco BTG 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 Banco BTG will offset losses from the drop in Banco BTG's long position.| G2D Investments vs. Deutsche Bank Aktiengesellschaft | G2D Investments vs. Cognizant Technology Solutions | G2D Investments vs. Unity Software | G2D Investments vs. Palantir Technologies |
| Banco BTG vs. Banco BTG Pactual | Banco BTG vs. Banco BTG Pactual | Banco BTG vs. Banco Santander SA | Banco BTG vs. Banco Santander SA |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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