Correlation Between State Grid and BTG Hotels
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By analyzing existing cross correlation between State Grid InformationCommunication and BTG Hotels Group, you can compare the effects of market volatilities on State Grid 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 State Grid with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and BTG Hotels.
Diversification Opportunities for State Grid and BTG Hotels
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between State and BTG is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic 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 State Grid 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 State Grid InformationCommunication 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 State Grid i.e., State Grid and BTG Hotels go up and down completely randomly.
Pair Corralation between State Grid and BTG Hotels
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 0.92 times more return on investment than BTG Hotels. However, State Grid InformationCommunication is 1.09 times less risky than BTG Hotels. It trades about -0.21 of its potential returns per unit of risk. BTG Hotels Group is currently generating about -0.27 per unit of risk. If you would invest 1,954 in State Grid InformationCommunication on October 29, 2024 and sell it today you would lose (139.00) from holding State Grid InformationCommunication or give up 7.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. BTG Hotels Group
Performance |
| Timeline |
| State Grid Informati |
| BTG Hotels Group |
State Grid and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and BTG Hotels
The main advantage of trading using opposite State Grid and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid 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.| State Grid vs. Industrial and Commercial | State Grid vs. Kweichow Moutai Co | State Grid vs. Agricultural Bank of | State Grid vs. China Mobile Limited |
| BTG Hotels vs. Shenzhen Noposion Agrochemicals | BTG Hotels vs. Shandong Polymer Biochemicals | BTG Hotels vs. Beijing Kingsoft Office | BTG Hotels vs. DO Home Collection |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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