Correlation Between Guangzhou Seagull and BTG Hotels
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By analyzing existing cross correlation between Guangzhou Seagull Kitchen and BTG Hotels Group, you can compare the effects of market volatilities on Guangzhou Seagull 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 Guangzhou Seagull with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Seagull and BTG Hotels.
Diversification Opportunities for Guangzhou Seagull and BTG Hotels
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and BTG is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Seagull Kitchen 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 Guangzhou Seagull 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 Guangzhou Seagull Kitchen 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 Guangzhou Seagull i.e., Guangzhou Seagull and BTG Hotels go up and down completely randomly.
Pair Corralation between Guangzhou Seagull and BTG Hotels
Assuming the 90 days trading horizon Guangzhou Seagull Kitchen is expected to generate 2.72 times more return on investment than BTG Hotels. However, Guangzhou Seagull is 2.72 times more volatile than BTG Hotels Group. It trades about -0.18 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 356.00 in Guangzhou Seagull Kitchen on October 12, 2024 and sell it today you would lose (56.00) from holding Guangzhou Seagull Kitchen or give up 15.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Seagull Kitchen vs. BTG Hotels Group
Performance |
| Timeline |
| Guangzhou Seagull Kitchen |
| BTG Hotels Group |
Guangzhou Seagull and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Seagull and BTG Hotels
The main advantage of trading using opposite Guangzhou Seagull and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Seagull 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.| Guangzhou Seagull vs. Jiahe Foods Industry | Guangzhou Seagull vs. Chongqing Changan Automobile | Guangzhou Seagull vs. Beijing Sanyuan Foods | Guangzhou Seagull vs. HaiXin Foods 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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