Correlation Between Guangdong Silvere and BTG Hotels
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By analyzing existing cross correlation between Guangdong Silvere Sci and BTG Hotels Group, you can compare the effects of market volatilities on Guangdong Silvere 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 Guangdong Silvere with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Silvere and BTG Hotels.
Diversification Opportunities for Guangdong Silvere and BTG Hotels
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and BTG is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Silvere Sci 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 Guangdong Silvere 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 Guangdong Silvere Sci 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 Guangdong Silvere i.e., Guangdong Silvere and BTG Hotels go up and down completely randomly.
Pair Corralation between Guangdong Silvere and BTG Hotels
Assuming the 90 days trading horizon Guangdong Silvere Sci is expected to under-perform the BTG Hotels. In addition to that, Guangdong Silvere is 1.96 times more volatile than BTG Hotels Group. It trades about -0.35 of its total potential returns per unit of risk. BTG Hotels Group is currently generating about -0.62 per unit of volatility. If you would invest 1,590 in BTG Hotels Group on October 14, 2024 and sell it today you would lose (294.00) from holding BTG Hotels Group or give up 18.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Silvere Sci vs. BTG Hotels Group
Performance |
| Timeline |
| Guangdong Silvere Sci |
| BTG Hotels Group |
Guangdong Silvere and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Silvere and BTG Hotels
The main advantage of trading using opposite Guangdong Silvere and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Silvere 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.| Guangdong Silvere vs. Sichuan Fulin Transportation | Guangdong Silvere vs. Cansino Biologics | Guangdong Silvere vs. Gansu Huangtai Wine marketing | Guangdong Silvere vs. Jiangsu Yueda 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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