Correlation Between BTG Pactual and WHG FINVEST
Can any of the company-specific risk be diversified away by investing in both BTG Pactual and WHG FINVEST 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 BTG Pactual and WHG FINVEST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BTG Pactual Logstica and WHG FINVEST SP, you can compare the effects of market volatilities on BTG Pactual and WHG FINVEST 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 BTG Pactual with a short position of WHG FINVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and WHG FINVEST.
Diversification Opportunities for BTG Pactual and WHG FINVEST
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BTG and WHG is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and WHG FINVEST SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHG FINVEST SP and BTG Pactual 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 BTG Pactual Logstica are associated (or correlated) with WHG FINVEST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WHG FINVEST SP has no effect on the direction of BTG Pactual i.e., BTG Pactual and WHG FINVEST go up and down completely randomly.
Pair Corralation between BTG Pactual and WHG FINVEST
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to generate 18.74 times more return on investment than WHG FINVEST. However, BTG Pactual is 18.74 times more volatile than WHG FINVEST SP. It trades about 0.11 of its potential returns per unit of risk. WHG FINVEST SP is currently generating about 0.24 per unit of risk. If you would invest 9,453 in BTG Pactual Logstica on October 25, 2024 and sell it today you would earn a total of 87.00 from holding BTG Pactual Logstica or generate 0.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 77.78% |
Values | Daily Returns |
BTG Pactual Logstica vs. WHG FINVEST SP
Performance |
Timeline |
BTG Pactual Logstica |
WHG FINVEST SP |
BTG Pactual and WHG FINVEST Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BTG Pactual and WHG FINVEST
The main advantage of trading using opposite BTG Pactual and WHG FINVEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, WHG FINVEST 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 WHG FINVEST will offset losses from the drop in WHG FINVEST's long position.BTG Pactual vs. Btg Pactual Real | BTG Pactual vs. Fundo Investimento Imobiliario | BTG Pactual vs. KILIMA VOLKANO RECEBVEIS | BTG Pactual vs. DEVANT PROPERTIES FUNDO |
WHG FINVEST vs. FDO INV IMOB | WHG FINVEST vs. SUPREMO FUNDO DE | WHG FINVEST vs. Real Estate Investment | WHG FINVEST vs. NAVI CRDITO IMOBILIRIO |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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