Correlation Between BTG Hotels and Ciwen Media
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By analyzing existing cross correlation between BTG Hotels Group and Ciwen Media Co, you can compare the effects of market volatilities on BTG Hotels and Ciwen Media 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 Ciwen Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Hotels and Ciwen Media.
Diversification Opportunities for BTG Hotels and Ciwen Media
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BTG and Ciwen is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding BTG Hotels Group and Ciwen Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciwen Media 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 Ciwen Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ciwen Media has no effect on the direction of BTG Hotels i.e., BTG Hotels and Ciwen Media go up and down completely randomly.
Pair Corralation between BTG Hotels and Ciwen Media
Assuming the 90 days trading horizon BTG Hotels is expected to generate 1.9 times less return on investment than Ciwen Media. But when comparing it to its historical volatility, BTG Hotels Group is 1.33 times less risky than Ciwen Media. It trades about 0.13 of its potential returns per unit of risk. Ciwen Media Co is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 470.00 in Ciwen Media Co on August 25, 2024 and sell it today you would earn a total of 204.00 from holding Ciwen Media Co or generate 43.4% 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. Ciwen Media Co
Performance |
| Timeline |
| BTG Hotels Group |
| Ciwen Media |
BTG Hotels and Ciwen Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Hotels and Ciwen Media
The main advantage of trading using opposite BTG Hotels and Ciwen Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Hotels position performs unexpectedly, Ciwen Media 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 Ciwen Media will offset losses from the drop in Ciwen Media's long position.| BTG Hotels vs. Biwin Storage Technology | BTG Hotels vs. PetroChina Co Ltd | BTG Hotels vs. Industrial and Commercial | BTG Hotels vs. China Construction Bank |
| Ciwen Media vs. Yindu Kitchen Equipment | Ciwen Media vs. Jinling Hotel Corp | Ciwen Media vs. Allwin Telecommunication Co | Ciwen Media vs. BTG Hotels 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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