Correlation Between BTG Hotels and Jiugui Liquor
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By analyzing existing cross correlation between BTG Hotels Group and Jiugui Liquor Co, you can compare the effects of market volatilities on BTG Hotels and Jiugui Liquor 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 Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Hotels and Jiugui Liquor.
Diversification Opportunities for BTG Hotels and Jiugui Liquor
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BTG and Jiugui is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding BTG Hotels Group and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor 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 Jiugui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiugui Liquor has no effect on the direction of BTG Hotels i.e., BTG Hotels and Jiugui Liquor go up and down completely randomly.
Pair Corralation between BTG Hotels and Jiugui Liquor
Assuming the 90 days trading horizon BTG Hotels Group is expected to generate 0.8 times more return on investment than Jiugui Liquor. However, BTG Hotels Group is 1.24 times less risky than Jiugui Liquor. It trades about -0.04 of its potential returns per unit of risk. Jiugui Liquor Co is currently generating about -0.07 per unit of risk. If you would invest 2,305 in BTG Hotels Group on October 29, 2024 and sell it today you would lose (968.00) from holding BTG Hotels Group or give up 42.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Hotels Group vs. Jiugui Liquor Co
Performance |
| Timeline |
| BTG Hotels Group |
| Jiugui Liquor |
BTG Hotels and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Hotels and Jiugui Liquor
The main advantage of trading using opposite BTG Hotels and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Hotels position performs unexpectedly, Jiugui Liquor 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 Jiugui Liquor will offset losses from the drop in Jiugui Liquor's long position.| BTG Hotels vs. Shenzhen Noposion Agrochemicals | BTG Hotels vs. Shandong Polymer Biochemicals | BTG Hotels vs. Beijing Kingsoft Office | BTG Hotels vs. DO Home Collection |
| Jiugui Liquor vs. Chengdu Kanghua Biological | Jiugui Liquor vs. Beijing Wantai Biological | Jiugui Liquor vs. Suzhou Novoprotein Scientific | Jiugui Liquor vs. Aluminum Corp of |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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