Correlation Between BTG Hotels and Topsec Technologies
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By analyzing existing cross correlation between BTG Hotels Group and Topsec Technologies Group, you can compare the effects of market volatilities on BTG Hotels and Topsec Technologies 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 Topsec Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Hotels and Topsec Technologies.
Diversification Opportunities for BTG Hotels and Topsec Technologies
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BTG and Topsec is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding BTG Hotels Group and Topsec Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Topsec Technologies 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 Topsec Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Topsec Technologies has no effect on the direction of BTG Hotels i.e., BTG Hotels and Topsec Technologies go up and down completely randomly.
Pair Corralation between BTG Hotels and Topsec Technologies
Assuming the 90 days trading horizon BTG Hotels is expected to generate 2.72 times less return on investment than Topsec Technologies. But when comparing it to its historical volatility, BTG Hotels Group is 1.35 times less risky than Topsec Technologies. It trades about 0.06 of its potential returns per unit of risk. Topsec Technologies Group is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 508.00 in Topsec Technologies Group on September 13, 2024 and sell it today you would earn a total of 247.00 from holding Topsec Technologies Group or generate 48.62% 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. Topsec Technologies Group
Performance |
| Timeline |
| BTG Hotels Group |
| Topsec Technologies |
BTG Hotels and Topsec Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Hotels and Topsec Technologies
The main advantage of trading using opposite BTG Hotels and Topsec Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Hotels position performs unexpectedly, Topsec Technologies 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 Topsec Technologies will offset losses from the drop in Topsec Technologies' long position.| BTG Hotels vs. Ming Yang Smart | BTG Hotels vs. 159681 | BTG Hotels vs. 159005 | BTG Hotels vs. Loctek Ergonomic Technology |
| Topsec Technologies vs. Western Metal Materials | Topsec Technologies vs. Shandong Hongchuang Aluminum | Topsec Technologies vs. Shandong Sinoglory Health | Topsec Technologies vs. Chongqing Shunbo Aluminum |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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