Correlation Between Fundo Investimento and BTG Pactual
Can any of the company-specific risk be diversified away by investing in both Fundo Investimento 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 Fundo Investimento and BTG Pactual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fundo Investimento Imobiliario and BTG Pactual Logstica, you can compare the effects of market volatilities on Fundo Investimento 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 Fundo Investimento with a short position of BTG Pactual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundo Investimento and BTG Pactual.
Diversification Opportunities for Fundo Investimento and BTG Pactual
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fundo and BTG is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Fundo Investimento Imobiliario 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 Fundo Investimento 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 Fundo Investimento Imobiliario 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 Fundo Investimento i.e., Fundo Investimento and BTG Pactual go up and down completely randomly.
Pair Corralation between Fundo Investimento and BTG Pactual
Assuming the 90 days trading horizon Fundo Investimento is expected to generate 1.18 times less return on investment than BTG Pactual. In addition to that, Fundo Investimento is 1.41 times more volatile than BTG Pactual Logstica. It trades about 0.01 of its total potential returns per unit of risk. BTG Pactual Logstica is currently generating about 0.02 per unit of volatility. If you would invest 9,160 in BTG Pactual Logstica on August 26, 2024 and sell it today you would earn a total of 548.00 from holding BTG Pactual Logstica or generate 5.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fundo Investimento Imobiliario vs. BTG Pactual Logstica
Performance |
| Timeline |
| Fundo Investimento |
| BTG Pactual Logstica |
Fundo Investimento and BTG Pactual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fundo Investimento and BTG Pactual
The main advantage of trading using opposite Fundo Investimento and BTG Pactual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fundo Investimento 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.| Fundo Investimento vs. BTG Pactual Logstica | Fundo Investimento vs. KILIMA VOLKANO RECEBVEIS | Fundo Investimento vs. Santander Renda De | Fundo Investimento vs. DEVANT PROPERTIES FUNDO |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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