Correlation Between BTG Hotels and Guangzhou Jinyi
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By analyzing existing cross correlation between BTG Hotels Group and Guangzhou Jinyi Media, you can compare the effects of market volatilities on BTG Hotels and Guangzhou Jinyi 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 Guangzhou Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Hotels and Guangzhou Jinyi.
Diversification Opportunities for BTG Hotels and Guangzhou Jinyi
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BTG and Guangzhou is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding BTG Hotels Group and Guangzhou Jinyi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jinyi 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 Guangzhou Jinyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jinyi Media has no effect on the direction of BTG Hotels i.e., BTG Hotels and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between BTG Hotels and Guangzhou Jinyi
Assuming the 90 days trading horizon BTG Hotels Group is expected to under-perform the Guangzhou Jinyi. But the stock apears to be less risky and, when comparing its historical volatility, BTG Hotels Group is 1.62 times less risky than Guangzhou Jinyi. The stock trades about -0.04 of its potential returns per unit of risk. The Guangzhou Jinyi Media is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 830.00 in Guangzhou Jinyi Media on October 30, 2024 and sell it today you would lose (36.00) from holding Guangzhou Jinyi Media or give up 4.34% 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. Guangzhou Jinyi Media
Performance |
| Timeline |
| BTG Hotels Group |
| Guangzhou Jinyi Media |
BTG Hotels and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Hotels and Guangzhou Jinyi
The main advantage of trading using opposite BTG Hotels and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Hotels position performs unexpectedly, Guangzhou Jinyi 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 Guangzhou Jinyi will offset losses from the drop in Guangzhou Jinyi's long position.| BTG Hotels vs. COL Digital Publishing | BTG Hotels vs. Shenzhen Bioeasy Biotechnology | BTG Hotels vs. Guangdong Marubi Biotechnology | BTG Hotels vs. Duzhe Publishing Media |
| Guangzhou Jinyi vs. China State Construction | Guangzhou Jinyi vs. Poly Real Estate | Guangzhou Jinyi vs. China Vanke Co | Guangzhou Jinyi vs. China Merchants Shekou |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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