Correlation Between Hubeiyichang Transportation and BTG Hotels
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hubeiyichang Transportation Group and BTG Hotels Group, you can compare the effects of market volatilities on Hubeiyichang Transportation 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 Hubeiyichang Transportation with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubeiyichang Transportation and BTG Hotels.
Diversification Opportunities for Hubeiyichang Transportation and BTG Hotels
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hubeiyichang and BTG is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Hubeiyichang Transportation Gr 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 Hubeiyichang Transportation 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 Hubeiyichang Transportation Group 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 Hubeiyichang Transportation i.e., Hubeiyichang Transportation and BTG Hotels go up and down completely randomly.
Pair Corralation between Hubeiyichang Transportation and BTG Hotels
Assuming the 90 days trading horizon Hubeiyichang Transportation Group is expected to generate 1.39 times more return on investment than BTG Hotels. However, Hubeiyichang Transportation is 1.39 times more volatile than BTG Hotels Group. It trades about -0.45 of its potential returns per unit of risk. BTG Hotels Group is currently generating about -0.62 per unit of risk. If you would invest 569.00 in Hubeiyichang Transportation Group on October 14, 2024 and sell it today you would lose (106.00) from holding Hubeiyichang Transportation Group or give up 18.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubeiyichang Transportation Gr vs. BTG Hotels Group
Performance |
| Timeline |
| Hubeiyichang Transportation |
| BTG Hotels Group |
Hubeiyichang Transportation and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubeiyichang Transportation and BTG Hotels
The main advantage of trading using opposite Hubeiyichang Transportation and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubeiyichang Transportation 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.The idea behind Hubeiyichang Transportation Group and BTG Hotels Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |