Correlation Between BTG Hotels and Qtone Education
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By analyzing existing cross correlation between BTG Hotels Group and Qtone Education Group, you can compare the effects of market volatilities on BTG Hotels and Qtone Education 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 Qtone Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Hotels and Qtone Education.
Diversification Opportunities for BTG Hotels and Qtone Education
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BTG and Qtone is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding BTG Hotels Group and Qtone Education Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qtone Education Group 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 Qtone Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qtone Education Group has no effect on the direction of BTG Hotels i.e., BTG Hotels and Qtone Education go up and down completely randomly.
Pair Corralation between BTG Hotels and Qtone Education
Assuming the 90 days trading horizon BTG Hotels Group is expected to under-perform the Qtone Education. But the stock apears to be less risky and, when comparing its historical volatility, BTG Hotels Group is 1.69 times less risky than Qtone Education. The stock trades about -0.03 of its potential returns per unit of risk. The Qtone Education Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 584.00 in Qtone Education Group on October 16, 2024 and sell it today you would lose (62.00) from holding Qtone Education Group or give up 10.62% 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. Qtone Education Group
Performance |
| Timeline |
| BTG Hotels Group |
| Qtone Education Group |
BTG Hotels and Qtone Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Hotels and Qtone Education
The main advantage of trading using opposite BTG Hotels and Qtone Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Hotels position performs unexpectedly, Qtone Education 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 Qtone Education will offset losses from the drop in Qtone Education's long position.| BTG Hotels vs. Shandong Longquan Pipeline | BTG Hotels vs. XinJiang GuoTong Pipeline | BTG Hotels vs. Xilong Chemical Co | BTG Hotels vs. Wuxi Chemical Equipment |
| Qtone Education vs. BTG Hotels Group | Qtone Education vs. Xinhua Winshare Publishing | Qtone Education vs. Huatian Hotel Group | Qtone Education vs. Allmed Medical Products |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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