Correlation Between Henan Shuanghui and BTG Hotels
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By analyzing existing cross correlation between Henan Shuanghui Investment and BTG Hotels Group, you can compare the effects of market volatilities on Henan Shuanghui 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 Henan Shuanghui with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and BTG Hotels.
Diversification Opportunities for Henan Shuanghui and BTG Hotels
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Henan and BTG is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment 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 Henan Shuanghui 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 Henan Shuanghui Investment 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 Henan Shuanghui i.e., Henan Shuanghui and BTG Hotels go up and down completely randomly.
Pair Corralation between Henan Shuanghui and BTG Hotels
Assuming the 90 days trading horizon Henan Shuanghui Investment is expected to generate 0.6 times more return on investment than BTG Hotels. However, Henan Shuanghui Investment is 1.67 times less risky than BTG Hotels. It trades about 0.03 of its potential returns per unit of risk. BTG Hotels Group is currently generating about -0.05 per unit of risk. If you would invest 2,264 in Henan Shuanghui Investment on October 11, 2024 and sell it today you would earn a total of 348.00 from holding Henan Shuanghui Investment or generate 15.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. BTG Hotels Group
Performance |
| Timeline |
| Henan Shuanghui Inve |
| BTG Hotels Group |
Henan Shuanghui and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and BTG Hotels
The main advantage of trading using opposite Henan Shuanghui and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui 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.| Henan Shuanghui vs. Bank of Suzhou | Henan Shuanghui vs. Peoples Insurance of | Henan Shuanghui vs. Ningxia Younglight Chemicals | Henan Shuanghui vs. Industrial Bank Co |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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