Correlation Between Shenzhen Noposion and BTG Hotels
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and BTG Hotels Group, you can compare the effects of market volatilities on Shenzhen Noposion 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 Shenzhen Noposion with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and BTG Hotels.
Diversification Opportunities for Shenzhen Noposion and BTG Hotels
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and BTG is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical 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 Shenzhen Noposion 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 Shenzhen Noposion Agrochemicals 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 Shenzhen Noposion i.e., Shenzhen Noposion and BTG Hotels go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and BTG Hotels
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to generate 1.52 times more return on investment than BTG Hotels. However, Shenzhen Noposion is 1.52 times more volatile than BTG Hotels Group. It trades about 0.05 of its potential returns per unit of risk. BTG Hotels Group is currently generating about -0.04 per unit of risk. If you would invest 920.00 in Shenzhen Noposion Agrochemicals on October 30, 2024 and sell it today you would earn a total of 67.00 from holding Shenzhen Noposion Agrochemicals or generate 7.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. BTG Hotels Group
Performance |
| Timeline |
| Shenzhen Noposion |
| BTG Hotels Group |
Shenzhen Noposion and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and BTG Hotels
The main advantage of trading using opposite Shenzhen Noposion and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion 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.| Shenzhen Noposion vs. Maxvision Technology Corp | Shenzhen Noposion vs. Nanjing OLO Home | Shenzhen Noposion vs. Shandong Homey Aquatic | Shenzhen Noposion vs. Linewell Software Co |
| BTG Hotels vs. COL Digital Publishing | BTG Hotels vs. Shenzhen Bioeasy Biotechnology | BTG Hotels vs. Guangdong Marubi Biotechnology | BTG Hotels vs. Duzhe Publishing Media |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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