Correlation Between Kinea Securities and BTG Pactual
Can any of the company-specific risk be diversified away by investing in both Kinea Securities 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 Kinea Securities and BTG Pactual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinea Securities Fundo and BTG Pactual Logstica, you can compare the effects of market volatilities on Kinea Securities 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 Kinea Securities with a short position of BTG Pactual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinea Securities and BTG Pactual.
Diversification Opportunities for Kinea Securities and BTG Pactual
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinea and BTG is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Kinea Securities Fundo 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 Kinea Securities 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 Kinea Securities Fundo 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 Kinea Securities i.e., Kinea Securities and BTG Pactual go up and down completely randomly.
Pair Corralation between Kinea Securities and BTG Pactual
Assuming the 90 days trading horizon Kinea Securities Fundo is expected to generate 1.08 times more return on investment than BTG Pactual. However, Kinea Securities is 1.08 times more volatile than BTG Pactual Logstica. It trades about 0.05 of its potential returns per unit of risk. BTG Pactual Logstica is currently generating about -0.02 per unit of risk. If you would invest 797.00 in Kinea Securities Fundo on August 26, 2024 and sell it today you would earn a total of 64.00 from holding Kinea Securities Fundo or generate 8.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinea Securities Fundo vs. BTG Pactual Logstica
Performance |
| Timeline |
| Kinea Securities Fundo |
| BTG Pactual Logstica |
Kinea Securities and BTG Pactual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinea Securities and BTG Pactual
The main advantage of trading using opposite Kinea Securities and BTG Pactual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinea Securities 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.| Kinea Securities vs. BTG Pactual Logstica | Kinea Securities vs. Plano Plano Desenvolvimento | Kinea Securities vs. Companhia Habitasul de | Kinea Securities vs. The Procter Gamble |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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