Correlation Between 159005 and BTG Hotels
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By analyzing existing cross correlation between 159005 and BTG Hotels Group, you can compare the effects of market volatilities on 159005 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 159005 with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and BTG Hotels.
Diversification Opportunities for 159005 and BTG Hotels
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159005 and BTG is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding 159005 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 159005 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 159005 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 159005 i.e., 159005 and BTG Hotels go up and down completely randomly.
Pair Corralation between 159005 and BTG Hotels
Assuming the 90 days trading horizon 159005 is expected to generate 3.8 times less return on investment than BTG Hotels. But when comparing it to its historical volatility, 159005 is 77.38 times less risky than BTG Hotels. It trades about 0.2 of its potential returns per unit of risk. BTG Hotels Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,610 in BTG Hotels Group on September 14, 2024 and sell it today you would lose (12.00) from holding BTG Hotels Group or give up 0.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. BTG Hotels Group
Performance |
| Timeline |
| 159005 |
| BTG Hotels Group |
159005 and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and BTG Hotels
The main advantage of trading using opposite 159005 and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 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 159005 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. Iat Automobile Technology | BTG Hotels vs. Shaanxi Broadcast TV | BTG Hotels vs. Zhengping RoadBridge Constr | BTG Hotels vs. Maxvision Technology Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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