Correlation Between YLZ Information and BTG Hotels
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By analyzing existing cross correlation between YLZ Information Tech and BTG Hotels Group, you can compare the effects of market volatilities on YLZ Information 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 YLZ Information with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of YLZ Information and BTG Hotels.
Diversification Opportunities for YLZ Information and BTG Hotels
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between YLZ and BTG is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding YLZ Information Tech 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 YLZ Information 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 YLZ Information Tech 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 YLZ Information i.e., YLZ Information and BTG Hotels go up and down completely randomly.
Pair Corralation between YLZ Information and BTG Hotels
Assuming the 90 days trading horizon YLZ Information Tech is expected to under-perform the BTG Hotels. In addition to that, YLZ Information is 2.1 times more volatile than BTG Hotels Group. It trades about -0.01 of its total potential returns per unit of risk. BTG Hotels Group is currently generating about 0.04 per unit of volatility. If you would invest 1,429 in BTG Hotels Group on August 29, 2024 and sell it today you would earn a total of 16.00 from holding BTG Hotels Group or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
YLZ Information Tech vs. BTG Hotels Group
Performance |
| Timeline |
| YLZ Information Tech |
| BTG Hotels Group |
YLZ Information and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YLZ Information and BTG Hotels
The main advantage of trading using opposite YLZ Information and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YLZ Information 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.| YLZ Information vs. China State Construction | YLZ Information vs. Huafa Industrial Co | YLZ Information vs. China International Capital | YLZ Information vs. Kweichow Moutai Co |
| BTG Hotels vs. Datang HuaYin Electric | BTG Hotels vs. YLZ Information Tech | BTG Hotels vs. Focus Media Information | BTG Hotels vs. Yonyou Auto Information |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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