Correlation Between Xp Malls and BTG Pactual
Can any of the company-specific risk be diversified away by investing in both Xp Malls 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 Xp Malls and BTG Pactual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xp Malls Fundo and BTG Pactual Logstica, you can compare the effects of market volatilities on Xp Malls 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 Xp Malls with a short position of BTG Pactual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xp Malls and BTG Pactual.
Diversification Opportunities for Xp Malls and BTG Pactual
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between XPML11 and BTG is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Xp Malls Fundo 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 Xp Malls 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 Xp Malls Fundo 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 Xp Malls i.e., Xp Malls and BTG Pactual go up and down completely randomly.
Pair Corralation between Xp Malls and BTG Pactual
Assuming the 90 days trading horizon Xp Malls Fundo is expected to generate 1.17 times more return on investment than BTG Pactual. However, Xp Malls is 1.17 times more volatile than BTG Pactual Logstica. It trades about 0.03 of its potential returns per unit of risk. BTG Pactual Logstica is currently generating about 0.02 per unit of risk. If you would invest 9,240 in Xp Malls Fundo on August 26, 2024 and sell it today you would earn a total of 1,110 from holding Xp Malls Fundo or generate 12.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xp Malls Fundo vs. BTG Pactual Logstica
Performance |
| Timeline |
| Xp Malls Fundo |
| BTG Pactual Logstica |
Xp Malls and BTG Pactual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xp Malls and BTG Pactual
The main advantage of trading using opposite Xp Malls and BTG Pactual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xp Malls 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.| Xp Malls vs. BTG Pactual Logstica | Xp Malls vs. Fundo Investimento Imobiliario | Xp Malls vs. KILIMA VOLKANO RECEBVEIS | Xp Malls vs. Santander Renda De |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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