Correlation Between BTG Hotels and Shenzhen Noposion
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By analyzing existing cross correlation between BTG Hotels Group and Shenzhen Noposion Agrochemicals, you can compare the effects of market volatilities on BTG Hotels and Shenzhen Noposion 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 Shenzhen Noposion. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Hotels and Shenzhen Noposion.
Diversification Opportunities for BTG Hotels and Shenzhen Noposion
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BTG and Shenzhen is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding BTG Hotels Group and Shenzhen Noposion Agrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Noposion 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 Shenzhen Noposion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Noposion has no effect on the direction of BTG Hotels i.e., BTG Hotels and Shenzhen Noposion go up and down completely randomly.
Pair Corralation between BTG Hotels and Shenzhen Noposion
Assuming the 90 days trading horizon BTG Hotels Group is expected to under-perform the Shenzhen Noposion. But the stock apears to be less risky and, when comparing its historical volatility, BTG Hotels Group is 2.29 times less risky than Shenzhen Noposion. The stock trades about -0.48 of its potential returns per unit of risk. The Shenzhen Noposion Agrochemicals is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 1,071 in Shenzhen Noposion Agrochemicals on October 11, 2024 and sell it today you would lose (55.00) from holding Shenzhen Noposion Agrochemicals or give up 5.14% 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. Shenzhen Noposion Agrochemical
Performance |
| Timeline |
| BTG Hotels Group |
| Shenzhen Noposion |
BTG Hotels and Shenzhen Noposion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Hotels and Shenzhen Noposion
The main advantage of trading using opposite BTG Hotels and Shenzhen Noposion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Hotels position performs unexpectedly, Shenzhen Noposion 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 Shenzhen Noposion will offset losses from the drop in Shenzhen Noposion'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 |
| Shenzhen Noposion vs. SSAW Hotels Resorts | Shenzhen Noposion vs. Zhengzhou Coal Mining | Shenzhen Noposion vs. BTG Hotels Group | Shenzhen Noposion vs. Shenzhen Silver Basis |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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