Correlation Between Ningbo Jianan and BTG Hotels
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By analyzing existing cross correlation between Ningbo Jianan Electronics and BTG Hotels Group, you can compare the effects of market volatilities on Ningbo Jianan 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 Ningbo Jianan with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Jianan and BTG Hotels.
Diversification Opportunities for Ningbo Jianan and BTG Hotels
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and BTG is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Jianan Electronics 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 Ningbo Jianan 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 Ningbo Jianan Electronics 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 Ningbo Jianan i.e., Ningbo Jianan and BTG Hotels go up and down completely randomly.
Pair Corralation between Ningbo Jianan and BTG Hotels
Assuming the 90 days trading horizon Ningbo Jianan Electronics is expected to generate 1.93 times more return on investment than BTG Hotels. However, Ningbo Jianan is 1.93 times more volatile than BTG Hotels Group. It trades about 0.1 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 2,264 in Ningbo Jianan Electronics on August 29, 2024 and sell it today you would earn a total of 148.00 from holding Ningbo Jianan Electronics or generate 6.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Jianan Electronics vs. BTG Hotels Group
Performance |
| Timeline |
| Ningbo Jianan Electronics |
| BTG Hotels Group |
Ningbo Jianan and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Jianan and BTG Hotels
The main advantage of trading using opposite Ningbo Jianan and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Jianan 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.| Ningbo Jianan vs. Industrial and Commercial | Ningbo Jianan vs. China Construction Bank | Ningbo Jianan vs. Agricultural Bank of | Ningbo Jianan vs. Bank of China |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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