Correlation Between Sportsoul and BTG Hotels
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By analyzing existing cross correlation between Sportsoul Co Ltd and BTG Hotels Group, you can compare the effects of market volatilities on Sportsoul 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 Sportsoul with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sportsoul and BTG Hotels.
Diversification Opportunities for Sportsoul and BTG Hotels
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sportsoul and BTG is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Sportsoul Co Ltd 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 Sportsoul 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 Sportsoul Co Ltd 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 Sportsoul i.e., Sportsoul and BTG Hotels go up and down completely randomly.
Pair Corralation between Sportsoul and BTG Hotels
Assuming the 90 days trading horizon Sportsoul Co Ltd is expected to under-perform the BTG Hotels. In addition to that, Sportsoul is 2.5 times more volatile than BTG Hotels Group. It trades about -0.35 of its total potential returns per unit of risk. BTG Hotels Group is currently generating about -0.62 per unit of volatility. If you would invest 1,590 in BTG Hotels Group on October 14, 2024 and sell it today you would lose (294.00) from holding BTG Hotels Group or give up 18.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sportsoul Co Ltd vs. BTG Hotels Group
Performance |
| Timeline |
| Sportsoul |
| BTG Hotels Group |
Sportsoul and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sportsoul and BTG Hotels
The main advantage of trading using opposite Sportsoul and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sportsoul 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.| Sportsoul vs. Lutian Machinery Co | Sportsoul vs. Guangzhou Automobile Group | Sportsoul vs. Masterwork Machinery | Sportsoul vs. Hunan Tyen Machinery |
| BTG Hotels vs. Guangdong Silvere Sci | BTG Hotels vs. Sportsoul Co Ltd | BTG Hotels vs. Tianjin Silvery Dragon | BTG Hotels vs. Hubeiyichang Transportation 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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