Correlation Between Indstrias Romi and BTG Pactual
Can any of the company-specific risk be diversified away by investing in both Indstrias Romi 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 Indstrias Romi and BTG Pactual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indstrias Romi SA and BTG Pactual Logstica, you can compare the effects of market volatilities on Indstrias Romi 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 Indstrias Romi with a short position of BTG Pactual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indstrias Romi and BTG Pactual.
Diversification Opportunities for Indstrias Romi and BTG Pactual
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Indstrias and BTG is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Indstrias Romi 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 Indstrias Romi 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 Indstrias Romi 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 Indstrias Romi i.e., Indstrias Romi and BTG Pactual go up and down completely randomly.
Pair Corralation between Indstrias Romi and BTG Pactual
Assuming the 90 days trading horizon Indstrias Romi SA is expected to under-perform the BTG Pactual. In addition to that, Indstrias Romi is 1.34 times more volatile than BTG Pactual Logstica. It trades about -0.24 of its total potential returns per unit of risk. BTG Pactual Logstica is currently generating about -0.07 per unit of volatility. If you would invest 9,915 in BTG Pactual Logstica on August 28, 2024 and sell it today you would lose (265.00) from holding BTG Pactual Logstica or give up 2.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indstrias Romi SA vs. BTG Pactual Logstica
Performance |
| Timeline |
| Indstrias Romi SA |
| BTG Pactual Logstica |
Indstrias Romi and BTG Pactual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indstrias Romi and BTG Pactual
The main advantage of trading using opposite Indstrias Romi and BTG Pactual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indstrias Romi 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.| Indstrias Romi vs. SLC Agrcola SA | Indstrias Romi vs. Camil Alimentos SA | Indstrias Romi vs. Marcopolo SA | Indstrias Romi vs. Movida 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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