Correlation Between BTG Hotels and Tianshui Huatian
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By analyzing existing cross correlation between BTG Hotels Group and Tianshui Huatian Technology, you can compare the effects of market volatilities on BTG Hotels and Tianshui Huatian 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 Tianshui Huatian. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Hotels and Tianshui Huatian.
Diversification Opportunities for BTG Hotels and Tianshui Huatian
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BTG and Tianshui is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding BTG Hotels Group and Tianshui Huatian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshui Huatian Tec 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 Tianshui Huatian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianshui Huatian Tec has no effect on the direction of BTG Hotels i.e., BTG Hotels and Tianshui Huatian go up and down completely randomly.
Pair Corralation between BTG Hotels and Tianshui Huatian
Assuming the 90 days trading horizon BTG Hotels Group is expected to generate 0.44 times more return on investment than Tianshui Huatian. However, BTG Hotels Group is 2.28 times less risky than Tianshui Huatian. It trades about 0.09 of its potential returns per unit of risk. Tianshui Huatian Technology is currently generating about -0.08 per unit of risk. If you would invest 1,415 in BTG Hotels Group on August 30, 2024 and sell it today you would earn a total of 45.00 from holding BTG Hotels Group or generate 3.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
BTG Hotels Group vs. Tianshui Huatian Technology
Performance |
| Timeline |
| BTG Hotels Group |
| Tianshui Huatian Tec |
BTG Hotels and Tianshui Huatian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Hotels and Tianshui Huatian
The main advantage of trading using opposite BTG Hotels and Tianshui Huatian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Hotels position performs unexpectedly, Tianshui Huatian 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 Tianshui Huatian will offset losses from the drop in Tianshui Huatian's long position.| BTG Hotels vs. Cambricon Technologies Corp | BTG Hotels vs. Loongson Technology Corp | BTG Hotels vs. Shenzhen Fortune Trend | BTG Hotels vs. Chongqing Road Bridge |
| Tianshui Huatian vs. China Sports Industry | Tianshui Huatian vs. Sino Platinum Metals Co | Tianshui Huatian vs. Chongqing Shunbo Aluminum | Tianshui Huatian vs. China Aluminum International |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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