Correlation Between BTG Hotels and Penyao Environmental
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By analyzing existing cross correlation between BTG Hotels Group and Penyao Environmental Protection, you can compare the effects of market volatilities on BTG Hotels and Penyao Environmental 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 Penyao Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Hotels and Penyao Environmental.
Diversification Opportunities for BTG Hotels and Penyao Environmental
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BTG and Penyao is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding BTG Hotels Group and Penyao Environmental Protectio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penyao Environmental 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 Penyao Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penyao Environmental has no effect on the direction of BTG Hotels i.e., BTG Hotels and Penyao Environmental go up and down completely randomly.
Pair Corralation between BTG Hotels and Penyao Environmental
Assuming the 90 days trading horizon BTG Hotels is expected to generate 1.54 times less return on investment than Penyao Environmental. But when comparing it to its historical volatility, BTG Hotels Group is 1.31 times less risky than Penyao Environmental. It trades about 0.07 of its potential returns per unit of risk. Penyao Environmental Protection is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 440.00 in Penyao Environmental Protection on September 27, 2024 and sell it today you would earn a total of 128.00 from holding Penyao Environmental Protection or generate 29.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Hotels Group vs. Penyao Environmental Protectio
Performance |
| Timeline |
| BTG Hotels Group |
| Penyao Environmental |
BTG Hotels and Penyao Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Hotels and Penyao Environmental
The main advantage of trading using opposite BTG Hotels and Penyao Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Hotels position performs unexpectedly, Penyao Environmental 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 Penyao Environmental will offset losses from the drop in Penyao Environmental'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 |
| Penyao Environmental vs. Shenzhen MYS Environmental | Penyao Environmental vs. AVIC Fund Management | Penyao Environmental vs. Shenzhen Bingchuan Network | Penyao Environmental vs. Penghua Shenzhen Energy |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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