Correlation Between Hengli Industrial and BTG Hotels
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By analyzing existing cross correlation between Hengli Industrial Development and BTG Hotels Group, you can compare the effects of market volatilities on Hengli Industrial and BTG Hotels 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 Hengli Industrial with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and BTG Hotels.
Diversification Opportunities for Hengli Industrial and BTG Hotels
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hengli and BTG is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development and BTG Hotels Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTG Hotels Group and Hengli Industrial 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 Hengli Industrial Development are associated (or correlated) with BTG Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTG Hotels Group has no effect on the direction of Hengli Industrial i.e., Hengli Industrial and BTG Hotels go up and down completely randomly.
Pair Corralation between Hengli Industrial and BTG Hotels
Assuming the 90 days trading horizon Hengli Industrial Development is expected to generate 1.45 times more return on investment than BTG Hotels. However, Hengli Industrial is 1.45 times more volatile than BTG Hotels Group. It trades about 0.26 of its potential returns per unit of risk. BTG Hotels Group is currently generating about -0.25 per unit of risk. If you would invest 206.00 in Hengli Industrial Development on October 24, 2024 and sell it today you would earn a total of 29.00 from holding Hengli Industrial Development or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Industrial Development vs. BTG Hotels Group
Performance |
| Timeline |
| Hengli Industrial |
| BTG Hotels Group |
Hengli Industrial and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Industrial and BTG Hotels
The main advantage of trading using opposite Hengli Industrial and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial position performs unexpectedly, BTG Hotels 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 Hotels will offset losses from the drop in BTG Hotels' long position.| Hengli Industrial vs. Miracll Chemicals Co | Hengli Industrial vs. Ningxia Younglight Chemicals | Hengli Industrial vs. Chengtun Mining Group | Hengli Industrial vs. Xizi Clean Energy |
| BTG Hotels vs. Zoje Resources Investment | BTG Hotels vs. Kunwu Jiuding Investment | BTG Hotels vs. Vanfund Urban Investment | BTG Hotels vs. Hengli Industrial Development |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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