Correlation Between Hypera SA and BTG Pactual
Can any of the company-specific risk be diversified away by investing in both Hypera SA 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 Hypera SA and BTG Pactual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hypera SA and BTG Pactual Logstica, you can compare the effects of market volatilities on Hypera SA 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 Hypera SA with a short position of BTG Pactual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hypera SA and BTG Pactual.
Diversification Opportunities for Hypera SA and BTG Pactual
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hypera and BTG is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Hypera SA 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 Hypera SA 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 Hypera SA 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 Hypera SA i.e., Hypera SA and BTG Pactual go up and down completely randomly.
Pair Corralation between Hypera SA and BTG Pactual
Assuming the 90 days trading horizon Hypera SA is expected to generate 2.06 times more return on investment than BTG Pactual. However, Hypera SA is 2.06 times more volatile than BTG Pactual Logstica. It trades about 0.12 of its potential returns per unit of risk. BTG Pactual Logstica is currently generating about 0.09 per unit of risk. If you would invest 1,782 in Hypera SA on December 30, 2024 and sell it today you would earn a total of 194.00 from holding Hypera SA or generate 10.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Hypera SA vs. BTG Pactual Logstica
Performance |
Timeline |
Hypera SA |
BTG Pactual Logstica |
Hypera SA and BTG Pactual Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hypera SA and BTG Pactual
The main advantage of trading using opposite Hypera SA and BTG Pactual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hypera SA 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.Hypera SA vs. Raia Drogasil SA | Hypera SA vs. Fleury SA | Hypera SA vs. Qualicorp Consultoria e | Hypera SA vs. Lojas Renner SA |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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