Correlation Between Vinci Shopping and BTG Pactual
Can any of the company-specific risk be diversified away by investing in both Vinci Shopping 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 Vinci Shopping and BTG Pactual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vinci Shopping Centers and BTG Pactual Logstica, you can compare the effects of market volatilities on Vinci Shopping 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 Vinci Shopping with a short position of BTG Pactual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vinci Shopping and BTG Pactual.
Diversification Opportunities for Vinci Shopping and BTG Pactual
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Vinci and BTG is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Vinci Shopping Centers 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 Vinci Shopping 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 Vinci Shopping Centers 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 Vinci Shopping i.e., Vinci Shopping and BTG Pactual go up and down completely randomly.
Pair Corralation between Vinci Shopping and BTG Pactual
Assuming the 90 days trading horizon Vinci Shopping is expected to generate 1.67 times less return on investment than BTG Pactual. In addition to that, Vinci Shopping is 1.06 times more volatile than BTG Pactual Logstica. It trades about 0.19 of its total potential returns per unit of risk. BTG Pactual Logstica is currently generating about 0.34 per unit of volatility. If you would invest 8,743 in BTG Pactual Logstica on October 20, 2024 and sell it today you would earn a total of 797.00 from holding BTG Pactual Logstica or generate 9.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 89.47% |
| Values | Daily Returns |
Vinci Shopping Centers vs. BTG Pactual Logstica
Performance |
| Timeline |
| Vinci Shopping Centers |
| BTG Pactual Logstica |
Vinci Shopping and BTG Pactual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vinci Shopping and BTG Pactual
The main advantage of trading using opposite Vinci Shopping and BTG Pactual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vinci Shopping 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.| Vinci Shopping vs. Vinci Imoveis Urbanos | Vinci Shopping vs. Vinci Instrumentos Financeiros | Vinci Shopping vs. FDO INV IMOB | Vinci Shopping vs. SUPREMO FUNDO DE |
| BTG Pactual vs. Btg Pactual Real | BTG Pactual vs. Fundo Investimento Imobiliario | BTG Pactual vs. KILIMA VOLKANO RECEBVEIS | 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges |