Correlation Between PayPal Holdings and BTG Pactual
Can any of the company-specific risk be diversified away by investing in both PayPal Holdings 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 PayPal Holdings and BTG Pactual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PayPal Holdings and BTG Pactual Chile, you can compare the effects of market volatilities on PayPal Holdings 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 PayPal Holdings with a short position of BTG Pactual. Check out your portfolio center. Please also check ongoing floating volatility patterns of PayPal Holdings and BTG Pactual.
Diversification Opportunities for PayPal Holdings and BTG Pactual
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PayPal and BTG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PayPal Holdings and BTG Pactual Chile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTG Pactual Chile and PayPal Holdings 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 PayPal Holdings 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 Chile has no effect on the direction of PayPal Holdings i.e., PayPal Holdings and BTG Pactual go up and down completely randomly.
Pair Corralation between PayPal Holdings and BTG Pactual
If you would invest 7,813 in PayPal Holdings on September 3, 2024 and sell it today you would earn a total of 864.00 from holding PayPal Holdings or generate 11.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
PayPal Holdings vs. BTG Pactual Chile
Performance |
| Timeline |
| PayPal Holdings |
| BTG Pactual Chile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PayPal Holdings and BTG Pactual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PayPal Holdings and BTG Pactual
The main advantage of trading using opposite PayPal Holdings and BTG Pactual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PayPal Holdings 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.| PayPal Holdings vs. American Express | PayPal Holdings vs. Capital One Financial | PayPal Holdings vs. Upstart Holdings | PayPal Holdings vs. Ally Financial |
| BTG Pactual vs. BTG Pactual Chile | BTG Pactual vs. MBI Administradora General | BTG Pactual vs. HMC SA ADMINISTRADORA | BTG Pactual vs. Weg ADM General |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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