Correlation Between BTG Hotels and Anhui Huilong
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By analyzing existing cross correlation between BTG Hotels Group and Anhui Huilong Agricultural, you can compare the effects of market volatilities on BTG Hotels and Anhui Huilong 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 Anhui Huilong. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Hotels and Anhui Huilong.
Diversification Opportunities for BTG Hotels and Anhui Huilong
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BTG and Anhui is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding BTG Hotels Group and Anhui Huilong Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huilong Agricu 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 Anhui Huilong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huilong Agricu has no effect on the direction of BTG Hotels i.e., BTG Hotels and Anhui Huilong go up and down completely randomly.
Pair Corralation between BTG Hotels and Anhui Huilong
Assuming the 90 days trading horizon BTG Hotels Group is expected to under-perform the Anhui Huilong. But the stock apears to be less risky and, when comparing its historical volatility, BTG Hotels Group is 1.09 times less risky than Anhui Huilong. The stock trades about -0.05 of its potential returns per unit of risk. The Anhui Huilong Agricultural is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 822.00 in Anhui Huilong Agricultural on October 18, 2024 and sell it today you would lose (296.00) from holding Anhui Huilong Agricultural or give up 36.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Hotels Group vs. Anhui Huilong Agricultural
Performance |
| Timeline |
| BTG Hotels Group |
| Anhui Huilong Agricu |
BTG Hotels and Anhui Huilong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Hotels and Anhui Huilong
The main advantage of trading using opposite BTG Hotels and Anhui Huilong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Hotels position performs unexpectedly, Anhui Huilong 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 Anhui Huilong will offset losses from the drop in Anhui Huilong's long position.| BTG Hotels vs. Bohai Leasing Co | BTG Hotels vs. CITIC Metal Co | BTG Hotels vs. Sunny Loan Top | BTG Hotels vs. Jiangsu GDK Biotechnology |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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