Correlation Between Fundos De and BTG Pactual

Can any of the company-specific risk be diversified away by investing in both Fundos De 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 Fundos De and BTG Pactual into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fundos de Investimento and BTG Pactual Logstica, you can compare the effects of market volatilities on Fundos De 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 Fundos De with a short position of BTG Pactual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundos De and BTG Pactual.

Diversification Opportunities for Fundos De and BTG Pactual

-0.38

Correlation Coefficient

Fundos De  BTG Pactual

Very good diversification

The 3 months correlation between Fundos and BTG is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Fundos de Investimento 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 Fundos De 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 Fundos de Investimento 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 Fundos De i.e., Fundos De and BTG Pactual go up and down completely randomly.

Pair Corralation between Fundos De and BTG Pactual

Assuming the 90 days trading horizon Fundos de Investimento is expected to under-perform the BTG Pactual. In addition to that, Fundos De is 1.94 times more volatile than BTG Pactual Logstica. It trades about -0.2 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  9,350  in BTG Pactual Logstica on December 2, 2024 and sell it today you would earn a total of  148.00  from holding BTG Pactual Logstica or generate 1.58% return on investment over 90 days.

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

Fundos de Investimento  vs.  BTG Pactual Logstica

Fundos de Investimento

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fundos de Investimento has generated negative risk-adjusted returns adding no value to fund investors. Despite weak performance in the last few months, the Fund's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

BTG Pactual Logstica

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BTG Pactual Logstica are ranked lower than 1 (%) 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.

Pair Trading with Fundos De and BTG Pactual

The main advantage of trading using opposite Fundos De and BTG Pactual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fundos De 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.

The idea behind Fundos de Investimento and BTG Pactual Logstica 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.