Correlation Between BTG Hotels and Beijing Jiaman
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By analyzing existing cross correlation between BTG Hotels Group and Beijing Jiaman Dress, you can compare the effects of market volatilities on BTG Hotels and Beijing Jiaman 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 Beijing Jiaman. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Hotels and Beijing Jiaman.
Diversification Opportunities for BTG Hotels and Beijing Jiaman
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BTG and Beijing is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding BTG Hotels Group and Beijing Jiaman Dress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Jiaman Dress 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 Beijing Jiaman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Jiaman Dress has no effect on the direction of BTG Hotels i.e., BTG Hotels and Beijing Jiaman go up and down completely randomly.
Pair Corralation between BTG Hotels and Beijing Jiaman
Assuming the 90 days trading horizon BTG Hotels Group is expected to under-perform the Beijing Jiaman. But the stock apears to be less risky and, when comparing its historical volatility, BTG Hotels Group is 1.09 times less risky than Beijing Jiaman. The stock trades about -0.04 of its potential returns per unit of risk. The Beijing Jiaman Dress is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,504 in Beijing Jiaman Dress on October 29, 2024 and sell it today you would lose (504.00) from holding Beijing Jiaman Dress or give up 20.13% 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. Beijing Jiaman Dress
Performance |
| Timeline |
| BTG Hotels Group |
| Beijing Jiaman Dress |
BTG Hotels and Beijing Jiaman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Hotels and Beijing Jiaman
The main advantage of trading using opposite BTG Hotels and Beijing Jiaman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Hotels position performs unexpectedly, Beijing Jiaman 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 Beijing Jiaman will offset losses from the drop in Beijing Jiaman's long position.| BTG Hotels vs. Shenzhen Noposion Agrochemicals | BTG Hotels vs. Shandong Polymer Biochemicals | BTG Hotels vs. Beijing Kingsoft Office | BTG Hotels vs. DO Home Collection |
| Beijing Jiaman vs. Duzhe Publishing Media | Beijing Jiaman vs. Changjiang Publishing Media | Beijing Jiaman vs. Jinhui Liquor Co | Beijing Jiaman vs. Yunnan Jianzhijia Health Chain |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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