Correlation Between TC Traders and BTG Pactual
Can any of the company-specific risk be diversified away by investing in both TC Traders 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 TC Traders and BTG Pactual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TC Traders Club and BTG Pactual Logstica, you can compare the effects of market volatilities on TC Traders 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 TC Traders with a short position of BTG Pactual. Check out your portfolio center. Please also check ongoing floating volatility patterns of TC Traders and BTG Pactual.
Diversification Opportunities for TC Traders and BTG Pactual
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TRAD3 and BTG is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding TC Traders Club 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 TC Traders 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 TC Traders Club 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 TC Traders i.e., TC Traders and BTG Pactual go up and down completely randomly.
Pair Corralation between TC Traders and BTG Pactual
Assuming the 90 days trading horizon TC Traders Club is expected to generate 9.81 times more return on investment than BTG Pactual. However, TC Traders is 9.81 times more volatile than BTG Pactual Logstica. It trades about 0.12 of its potential returns per unit of risk. BTG Pactual Logstica is currently generating about -0.16 per unit of risk. If you would invest 514.00 in TC Traders Club on September 2, 2024 and sell it today you would earn a total of 66.00 from holding TC Traders Club or generate 12.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TC Traders Club vs. BTG Pactual Logstica
Performance |
| Timeline |
| TC Traders Club |
| BTG Pactual Logstica |
TC Traders and BTG Pactual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TC Traders and BTG Pactual
The main advantage of trading using opposite TC Traders and BTG Pactual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TC Traders 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.| TC Traders vs. Mliuz SA | TC Traders vs. Bemobi Mobile Tech | TC Traders vs. Fras le SA | TC Traders vs. Energisa SA |
| BTG Pactual vs. Plano Plano Desenvolvimento | BTG Pactual vs. Cable One | BTG Pactual vs. ATMA Participaes SA | BTG Pactual vs. British American Tobacco |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |