Correlation Between Nanjing Putian and BTG Hotels
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nanjing Putian Telecommunications and BTG Hotels Group, you can compare the effects of market volatilities on Nanjing Putian 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 Nanjing Putian with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and BTG Hotels.
Diversification Opportunities for Nanjing Putian and BTG Hotels
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and BTG is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati 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 Nanjing Putian 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 Nanjing Putian Telecommunications 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 Nanjing Putian i.e., Nanjing Putian and BTG Hotels go up and down completely randomly.
Pair Corralation between Nanjing Putian and BTG Hotels
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.61 times more return on investment than BTG Hotels. However, Nanjing Putian is 1.61 times more volatile than BTG Hotels Group. It trades about 0.03 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 356.00 in Nanjing Putian Telecommunications on August 25, 2024 and sell it today you would earn a total of 81.00 from holding Nanjing Putian Telecommunications or generate 22.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. BTG Hotels Group
Performance |
| Timeline |
| Nanjing Putian Telec |
| BTG Hotels Group |
Nanjing Putian and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and BTG Hotels
The main advantage of trading using opposite Nanjing Putian and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian 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.| Nanjing Putian vs. Shenzhen MYS Environmental | Nanjing Putian vs. AVIC Fund Management | Nanjing Putian vs. Shenzhen Bingchuan Network | Nanjing Putian vs. Penghua Shenzhen Energy |
| BTG Hotels vs. Biwin Storage Technology | BTG Hotels vs. PetroChina Co Ltd | BTG Hotels vs. Industrial and Commercial | BTG Hotels vs. China Construction Bank |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |