Correlation Between Chongqing Road and BTG Hotels
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By analyzing existing cross correlation between Chongqing Road Bridge and BTG Hotels Group, you can compare the effects of market volatilities on Chongqing Road 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 Chongqing Road with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Road and BTG Hotels.
Diversification Opportunities for Chongqing Road and BTG Hotels
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chongqing and BTG is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Road Bridge 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 Chongqing Road 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 Chongqing Road Bridge 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 Chongqing Road i.e., Chongqing Road and BTG Hotels go up and down completely randomly.
Pair Corralation between Chongqing Road and BTG Hotels
Assuming the 90 days trading horizon Chongqing Road Bridge is expected to generate 1.49 times more return on investment than BTG Hotels. However, Chongqing Road is 1.49 times more volatile than BTG Hotels Group. It trades about 0.05 of its potential returns per unit of risk. BTG Hotels Group is currently generating about -0.03 per unit of risk. If you would invest 469.00 in Chongqing Road Bridge on September 2, 2024 and sell it today you would earn a total of 199.00 from holding Chongqing Road Bridge or generate 42.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Road Bridge vs. BTG Hotels Group
Performance |
| Timeline |
| Chongqing Road Bridge |
| BTG Hotels Group |
Chongqing Road and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Road and BTG Hotels
The main advantage of trading using opposite Chongqing Road and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Road 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.| Chongqing Road vs. Fuzhou Rockchip Electronics | Chongqing Road vs. Great Sun Foods Co | Chongqing Road vs. Xiamen Jihong Package | Chongqing Road vs. Eastroc Beverage Group |
| BTG Hotels vs. Huatian Hotel Group | BTG Hotels vs. Shenzhen Shenbao Industrial | BTG Hotels vs. Hunan Investment Group | BTG Hotels vs. Beijing Mainstreets Investment |
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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