Correlation Between BTG Hotels and Miracll Chemicals
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By analyzing existing cross correlation between BTG Hotels Group and Miracll Chemicals Co, you can compare the effects of market volatilities on BTG Hotels and Miracll Chemicals 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 Miracll Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Hotels and Miracll Chemicals.
Diversification Opportunities for BTG Hotels and Miracll Chemicals
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BTG and Miracll is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding BTG Hotels Group and Miracll Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miracll 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 Miracll Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miracll Chemicals has no effect on the direction of BTG Hotels i.e., BTG Hotels and Miracll Chemicals go up and down completely randomly.
Pair Corralation between BTG Hotels and Miracll Chemicals
Assuming the 90 days trading horizon BTG Hotels Group is expected to generate 0.68 times more return on investment than Miracll Chemicals. However, BTG Hotels Group is 1.46 times less risky than Miracll Chemicals. It trades about 0.07 of its potential returns per unit of risk. Miracll Chemicals Co is currently generating about 0.01 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. Miracll Chemicals Co
Performance |
| Timeline |
| BTG Hotels Group |
| Miracll Chemicals |
BTG Hotels and Miracll Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Hotels and Miracll Chemicals
The main advantage of trading using opposite BTG Hotels and Miracll Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Hotels position performs unexpectedly, Miracll Chemicals 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 Miracll Chemicals will offset losses from the drop in Miracll Chemicals' 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 |
| Miracll Chemicals vs. Guangzhou Boji Medical | Miracll Chemicals vs. GKHT Medical Technology | Miracll Chemicals vs. Shantou Wanshun Package | Miracll Chemicals vs. Xiangyu Medical Co |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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