Correlation Between BTG Hotels and 5I5j Holding
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By analyzing existing cross correlation between BTG Hotels Group and 5I5j Holding Group, you can compare the effects of market volatilities on BTG Hotels and 5I5j Holding 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 BTG Hotels with a short position of 5I5j Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Hotels and 5I5j Holding.
Diversification Opportunities for BTG Hotels and 5I5j Holding
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BTG and 5I5j is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding BTG Hotels Group and 5I5j Holding Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 5I5j Holding Group and BTG Hotels 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 BTG Hotels Group are associated (or correlated) with 5I5j Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 5I5j Holding Group has no effect on the direction of BTG Hotels i.e., BTG Hotels and 5I5j Holding go up and down completely randomly.
Pair Corralation between BTG Hotels and 5I5j Holding
Assuming the 90 days trading horizon BTG Hotels Group is expected to under-perform the 5I5j Holding. But the stock apears to be less risky and, when comparing its historical volatility, BTG Hotels Group is 1.91 times less risky than 5I5j Holding. The stock trades about 0.0 of its potential returns per unit of risk. The 5I5j Holding Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 250.00 in 5I5j Holding Group on September 26, 2024 and sell it today you would earn a total of 78.00 from holding 5I5j Holding Group or generate 31.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Hotels Group vs. 5I5j Holding Group
Performance |
| Timeline |
| BTG Hotels Group |
| 5I5j Holding Group |
BTG Hotels and 5I5j Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Hotels and 5I5j Holding
The main advantage of trading using opposite BTG Hotels and 5I5j Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Hotels position performs unexpectedly, 5I5j Holding 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 5I5j Holding will offset losses from the drop in 5I5j Holding's long position.| BTG Hotels vs. Bank of China | BTG Hotels vs. Kweichow Moutai Co | BTG Hotels vs. PetroChina Co Ltd | BTG Hotels vs. Bank of Communications |
| 5I5j Holding vs. Aofu Environmental Technology | 5I5j Holding vs. Penyao Environmental Protection | 5I5j Holding vs. Eit Environmental Development | 5I5j Holding vs. BTG Hotels 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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