Correlation Between BTG Hotels and Ningxia Younglight
Specify exactly 2 symbols:
By analyzing existing cross correlation between BTG Hotels Group and Ningxia Younglight Chemicals, you can compare the effects of market volatilities on BTG Hotels and Ningxia Younglight 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 Ningxia Younglight. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Hotels and Ningxia Younglight.
Diversification Opportunities for BTG Hotels and Ningxia Younglight
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BTG and Ningxia is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding BTG Hotels Group and Ningxia Younglight Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Younglight 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 Ningxia Younglight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningxia Younglight has no effect on the direction of BTG Hotels i.e., BTG Hotels and Ningxia Younglight go up and down completely randomly.
Pair Corralation between BTG Hotels and Ningxia Younglight
Assuming the 90 days trading horizon BTG Hotels Group is expected to under-perform the Ningxia Younglight. But the stock apears to be less risky and, when comparing its historical volatility, BTG Hotels Group is 2.68 times less risky than Ningxia Younglight. The stock trades about 0.0 of its potential returns per unit of risk. The Ningxia Younglight Chemicals is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 700.00 in Ningxia Younglight Chemicals on August 25, 2024 and sell it today you would earn a total of 132.00 from holding Ningxia Younglight Chemicals or generate 18.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Hotels Group vs. Ningxia Younglight Chemicals
Performance |
| Timeline |
| BTG Hotels Group |
| Ningxia Younglight |
BTG Hotels and Ningxia Younglight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Hotels and Ningxia Younglight
The main advantage of trading using opposite BTG Hotels and Ningxia Younglight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Hotels position performs unexpectedly, Ningxia Younglight 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 Ningxia Younglight will offset losses from the drop in Ningxia Younglight's long position.| BTG Hotels vs. Biwin Storage Technology | BTG Hotels vs. PetroChina Co Ltd | BTG Hotels vs. Industrial and Commercial | BTG Hotels vs. China Construction Bank |
| Ningxia Younglight vs. Zijin Mining Group | Ningxia Younglight vs. Wanhua Chemical Group | Ningxia Younglight vs. Baoshan Iron Steel | Ningxia Younglight vs. Shandong Gold Mining |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |