Correlation Between BTG Hotels and Do Fluoride
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By analyzing existing cross correlation between BTG Hotels Group and Do Fluoride Chemicals Co, you can compare the effects of market volatilities on BTG Hotels and Do Fluoride 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 Do Fluoride. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Hotels and Do Fluoride.
Diversification Opportunities for BTG Hotels and Do Fluoride
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BTG and 002407 is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding BTG Hotels Group and Do Fluoride Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Do Fluoride Chemicals 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 Do Fluoride. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Do Fluoride Chemicals has no effect on the direction of BTG Hotels i.e., BTG Hotels and Do Fluoride go up and down completely randomly.
Pair Corralation between BTG Hotels and Do Fluoride
Assuming the 90 days trading horizon BTG Hotels Group is expected to generate 0.81 times more return on investment than Do Fluoride. However, BTG Hotels Group is 1.24 times less risky than Do Fluoride. It trades about 0.07 of its potential returns per unit of risk. Do Fluoride Chemicals Co is currently generating about 0.03 per unit of risk. If you would invest 1,261 in BTG Hotels Group on September 27, 2024 and sell it today you would earn a total of 232.00 from holding BTG Hotels Group or generate 18.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Hotels Group vs. Do Fluoride Chemicals Co
Performance |
| Timeline |
| BTG Hotels Group |
| Do Fluoride Chemicals |
BTG Hotels and Do Fluoride Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Hotels and Do Fluoride
The main advantage of trading using opposite BTG Hotels and Do Fluoride positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Hotels position performs unexpectedly, Do Fluoride 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 Do Fluoride will offset losses from the drop in Do Fluoride's long position.| BTG Hotels vs. Bank of China | BTG Hotels vs. Kweichow Moutai Co | BTG Hotels vs. PetroChina Co Ltd | BTG Hotels vs. Bank of Communications |
| Do Fluoride vs. Zijin Mining Group | Do Fluoride vs. Wanhua Chemical Group | Do Fluoride vs. Baoshan Iron Steel | Do Fluoride vs. Shandong Gold Mining |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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