Correlation Between Beijing Shunxin and BTG Hotels
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By analyzing existing cross correlation between Beijing Shunxin Agriculture and BTG Hotels Group, you can compare the effects of market volatilities on Beijing Shunxin 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 Beijing Shunxin with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Shunxin and BTG Hotels.
Diversification Opportunities for Beijing Shunxin and BTG Hotels
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and BTG is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Shunxin Agriculture 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 Beijing Shunxin 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 Beijing Shunxin Agriculture 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 Beijing Shunxin i.e., Beijing Shunxin and BTG Hotels go up and down completely randomly.
Pair Corralation between Beijing Shunxin and BTG Hotels
Assuming the 90 days trading horizon Beijing Shunxin Agriculture is expected to generate 1.58 times more return on investment than BTG Hotels. However, Beijing Shunxin is 1.58 times more volatile than BTG Hotels Group. It trades about -0.3 of its potential returns per unit of risk. BTG Hotels Group is currently generating about -0.54 per unit of risk. If you would invest 1,986 in Beijing Shunxin Agriculture on October 12, 2024 and sell it today you would lose (287.00) from holding Beijing Shunxin Agriculture or give up 14.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Shunxin Agriculture vs. BTG Hotels Group
Performance |
| Timeline |
| Beijing Shunxin Agri |
| BTG Hotels Group |
Beijing Shunxin and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Shunxin and BTG Hotels
The main advantage of trading using opposite Beijing Shunxin and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Shunxin 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.| Beijing Shunxin vs. Sunny Loan Top | Beijing Shunxin vs. HUAQIN TECHNOLOGY LTD | Beijing Shunxin vs. Changjiang Publishing Media | Beijing Shunxin vs. Thinkingdom Media Group |
| BTG Hotels vs. Sichuan Teway Food | BTG Hotels vs. Qingdao Foods Co | BTG Hotels vs. Jinhui Liquor Co | BTG Hotels vs. Jiajia Food Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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