Correlation Between BTG Pactual and Unipar Carbocloro

Can any of the company-specific risk be diversified away by investing in both BTG Pactual and Unipar Carbocloro 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 Unipar Carbocloro 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 Unipar Carbocloro SA, you can compare the effects of market volatilities on BTG Pactual and Unipar Carbocloro 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 Unipar Carbocloro. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Unipar Carbocloro.

Diversification Opportunities for BTG Pactual and Unipar Carbocloro

0.14

Correlation Coefficient

BTG Pactual  Unipar Carbocloro

Average diversification

The 3 months correlation between BTG and Unipar is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Unipar Carbocloro SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unipar Carbocloro 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 Unipar Carbocloro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unipar Carbocloro has no effect on the direction of BTG Pactual i.e., BTG Pactual and Unipar Carbocloro go up and down completely randomly.

Pair Corralation between BTG Pactual and Unipar Carbocloro

Assuming the 90 days trading horizon BTG Pactual is expected to generate 3.02 times less return on investment than Unipar Carbocloro. But when comparing it to its historical volatility, BTG Pactual Logstica is 2.97 times less risky than Unipar Carbocloro. It trades about 0.09 of its potential returns per unit of risk. Unipar Carbocloro SA is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  4,521  in Unipar Carbocloro SA on December 23, 2024 and sell it today you would earn a total of  479.00  from holding Unipar Carbocloro SA or generate 10.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

BTG Pactual Logstica  vs.  Unipar Carbocloro SA

BTG Pactual Logstica

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in BTG Pactual Logstica are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong essential indicators, BTG Pactual is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Unipar Carbocloro

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Unipar Carbocloro SA are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Unipar Carbocloro may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with BTG Pactual and Unipar Carbocloro

The main advantage of trading using opposite BTG Pactual and Unipar Carbocloro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual position performs unexpectedly, Unipar Carbocloro 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 Unipar Carbocloro will offset losses from the drop in Unipar Carbocloro's long position.

The idea behind BTG Pactual Logstica and Unipar Carbocloro SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.