Correlation Between Do Fluoride and BTG Hotels
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By analyzing existing cross correlation between Do Fluoride Chemicals Co and BTG Hotels Group, you can compare the effects of market volatilities on Do Fluoride 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 Do Fluoride with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Do Fluoride and BTG Hotels.
Diversification Opportunities for Do Fluoride and BTG Hotels
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 002407 and BTG is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Do Fluoride Chemicals Co 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 Do Fluoride 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 Do Fluoride Chemicals Co 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 Do Fluoride i.e., Do Fluoride and BTG Hotels go up and down completely randomly.
Pair Corralation between Do Fluoride and BTG Hotels
Assuming the 90 days trading horizon Do Fluoride is expected to generate 2.04 times less return on investment than BTG Hotels. In addition to that, Do Fluoride is 1.24 times more volatile than BTG Hotels Group. It trades about 0.03 of its total potential returns per unit of risk. BTG Hotels Group is currently generating about 0.07 per unit of volatility. If you would invest 1,261 in BTG Hotels Group on September 27, 2024 and sell it today you would earn a total of 232.00 from holding BTG Hotels Group or generate 18.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Do Fluoride Chemicals Co vs. BTG Hotels Group
Performance |
| Timeline |
| Do Fluoride Chemicals |
| BTG Hotels Group |
Do Fluoride and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Do Fluoride and BTG Hotels
The main advantage of trading using opposite Do Fluoride and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Do Fluoride 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.| Do Fluoride vs. Zijin Mining Group | Do Fluoride vs. Wanhua Chemical Group | Do Fluoride vs. Baoshan Iron Steel | Do Fluoride vs. Shandong Gold Mining |
| BTG Hotels vs. Bank of China | BTG Hotels vs. Kweichow Moutai Co | BTG Hotels vs. PetroChina Co Ltd | BTG Hotels vs. Bank of Communications |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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