Correlation Between Banco BTG and Halliburton

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

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

Diversification Opportunities for Banco BTG and Halliburton

-0.32

Correlation Coefficient

Banco BTG  Halliburton

Very good diversification

The 3 months correlation between Banco and Halliburton is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Banco BTG Pactual and Halliburton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton and Banco BTG 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 Banco BTG Pactual are associated (or correlated) with Halliburton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halliburton has no effect on the direction of Banco BTG i.e., Banco BTG and Halliburton go up and down completely randomly.

Pair Corralation between Banco BTG and Halliburton

Assuming the 90 days trading horizon Banco BTG Pactual is expected to generate 1.1 times more return on investment than Halliburton. However, Banco BTG is 1.1 times more volatile than Halliburton. It trades about 0.03 of its potential returns per unit of risk. Halliburton is currently generating about -0.02 per unit of risk. If you would invest  752.00  in Banco BTG Pactual on March 31, 2025 and sell it today you would earn a total of  187.00  from holding Banco BTG Pactual or generate 24.87% return on investment over 90 days.

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

Banco BTG Pactual  vs.  Halliburton

Banco BTG Pactual

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Banco BTG Pactual are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Banco BTG unveiled solid returns over the last few months and may actually be approaching a breakup point.

Halliburton

Risk-Adjusted Performance

Very Weak

Over the last 90 days Halliburton has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's essential indicators remain somewhat strong which may send shares a bit higher in July 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Banco BTG and Halliburton

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

The idea behind Banco BTG Pactual and Halliburton 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 Stocks Directory module to find actively traded stocks across global markets.