Correlation Between BTG Hotels and Beijing Shunxin
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By analyzing existing cross correlation between BTG Hotels Group and Beijing Shunxin Agriculture, you can compare the effects of market volatilities on BTG Hotels and Beijing Shunxin 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 Beijing Shunxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Hotels and Beijing Shunxin.
Diversification Opportunities for BTG Hotels and Beijing Shunxin
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BTG and Beijing is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding BTG Hotels Group and Beijing Shunxin Agriculture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Shunxin Agri 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 Beijing Shunxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Shunxin Agri has no effect on the direction of BTG Hotels i.e., BTG Hotels and Beijing Shunxin go up and down completely randomly.
Pair Corralation between BTG Hotels and Beijing Shunxin
Assuming the 90 days trading horizon BTG Hotels Group is expected to under-perform the Beijing Shunxin. But the stock apears to be less risky and, when comparing its historical volatility, BTG Hotels Group is 1.58 times less risky than Beijing Shunxin. The stock trades about -0.54 of its potential returns per unit of risk. The Beijing Shunxin Agriculture is currently generating about -0.3 of returns per unit of risk over similar time horizon. If you would invest 1,986 in Beijing Shunxin Agriculture on October 12, 2024 and sell it today you would lose (287.00) from holding Beijing Shunxin Agriculture or give up 14.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Hotels Group vs. Beijing Shunxin Agriculture
Performance |
| Timeline |
| BTG Hotels Group |
| Beijing Shunxin Agri |
BTG Hotels and Beijing Shunxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Hotels and Beijing Shunxin
The main advantage of trading using opposite BTG Hotels and Beijing Shunxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Hotels position performs unexpectedly, Beijing Shunxin 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 Beijing Shunxin will offset losses from the drop in Beijing Shunxin's long position.| BTG Hotels vs. Sichuan Teway Food | BTG Hotels vs. Qingdao Foods Co | BTG Hotels vs. Jinhui Liquor Co | BTG Hotels vs. Jiajia Food Group |
| Beijing Shunxin vs. Sunny Loan Top | Beijing Shunxin vs. HUAQIN TECHNOLOGY LTD | Beijing Shunxin vs. Changjiang Publishing Media | Beijing Shunxin vs. Thinkingdom Media 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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