Correlation Between Kepler Weber and BTG Pactual
Can any of the company-specific risk be diversified away by investing in both Kepler Weber 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 Kepler Weber and BTG Pactual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kepler Weber SA and BTG Pactual Logstica, you can compare the effects of market volatilities on Kepler Weber 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 Kepler Weber with a short position of BTG Pactual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kepler Weber and BTG Pactual.
Diversification Opportunities for Kepler Weber and BTG Pactual
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kepler and BTG is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Kepler Weber SA 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 Kepler Weber 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 Kepler Weber SA 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 Kepler Weber i.e., Kepler Weber and BTG Pactual go up and down completely randomly.
Pair Corralation between Kepler Weber and BTG Pactual
Assuming the 90 days trading horizon Kepler Weber SA is expected to generate 3.41 times more return on investment than BTG Pactual. However, Kepler Weber is 3.41 times more volatile than BTG Pactual Logstica. It trades about -0.01 of its potential returns per unit of risk. BTG Pactual Logstica is currently generating about -0.07 per unit of risk. If you would invest 998.00 in Kepler Weber SA on September 1, 2024 and sell it today you would lose (14.00) from holding Kepler Weber SA or give up 1.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Kepler Weber SA vs. BTG Pactual Logstica
Performance |
| Timeline |
| Kepler Weber SA |
| BTG Pactual Logstica |
Kepler Weber and BTG Pactual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kepler Weber and BTG Pactual
The main advantage of trading using opposite Kepler Weber and BTG Pactual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kepler Weber 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.| Kepler Weber vs. METISA Metalrgica Timboense | Kepler Weber vs. Lupatech SA | Kepler Weber vs. Fras le SA | Kepler Weber vs. Energisa SA |
| BTG Pactual vs. Fundo Investimento Imobiliario | BTG Pactual vs. KILIMA VOLKANO RECEBVEIS | BTG Pactual vs. DEVANT PROPERTIES FUNDO | BTG Pactual vs. SPARTA FIAGRO FDO |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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