Correlation Between Hewlett Packard and BTG Pactual
Can any of the company-specific risk be diversified away by investing in both Hewlett Packard 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 Hewlett Packard and BTG Pactual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hewlett Packard Co and BTG Pactual Logstica, you can compare the effects of market volatilities on Hewlett Packard 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 Hewlett Packard with a short position of BTG Pactual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hewlett Packard and BTG Pactual.
Diversification Opportunities for Hewlett Packard and BTG Pactual
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hewlett and BTG is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Hewlett Packard Co 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 Hewlett Packard 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 Hewlett Packard Co 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 Hewlett Packard i.e., Hewlett Packard and BTG Pactual go up and down completely randomly.
Pair Corralation between Hewlett Packard and BTG Pactual
Assuming the 90 days trading horizon Hewlett Packard Co is expected to generate 1.94 times more return on investment than BTG Pactual. However, Hewlett Packard is 1.94 times more volatile than BTG Pactual Logstica. It trades about 0.18 of its potential returns per unit of risk. BTG Pactual Logstica is currently generating about 0.12 per unit of risk. If you would invest 21,122 in Hewlett Packard Co on August 26, 2024 and sell it today you would earn a total of 1,095 from holding Hewlett Packard Co or generate 5.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hewlett Packard Co vs. BTG Pactual Logstica
Performance |
| Timeline |
| Hewlett Packard |
| BTG Pactual Logstica |
Hewlett Packard and BTG Pactual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hewlett Packard and BTG Pactual
The main advantage of trading using opposite Hewlett Packard and BTG Pactual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hewlett Packard 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.| Hewlett Packard vs. BTG Pactual Logstica | Hewlett Packard vs. Plano Plano Desenvolvimento | Hewlett Packard vs. Cable One | Hewlett Packard vs. ATMA Participaes SA |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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