Correlation Between BTG Hotels and Zhejiang Juhua
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By analyzing existing cross correlation between BTG Hotels Group and Zhejiang Juhua Co, you can compare the effects of market volatilities on BTG Hotels and Zhejiang Juhua 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 Zhejiang Juhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Hotels and Zhejiang Juhua.
Diversification Opportunities for BTG Hotels and Zhejiang Juhua
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BTG and Zhejiang is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding BTG Hotels Group and Zhejiang Juhua Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Juhua 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 Zhejiang Juhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Juhua has no effect on the direction of BTG Hotels i.e., BTG Hotels and Zhejiang Juhua go up and down completely randomly.
Pair Corralation between BTG Hotels and Zhejiang Juhua
Assuming the 90 days trading horizon BTG Hotels is expected to generate 1.86 times less return on investment than Zhejiang Juhua. But when comparing it to its historical volatility, BTG Hotels Group is 1.37 times less risky than Zhejiang Juhua. It trades about 0.1 of its potential returns per unit of risk. Zhejiang Juhua Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,092 in Zhejiang Juhua Co on September 1, 2024 and sell it today you would earn a total of 145.00 from holding Zhejiang Juhua Co or generate 6.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Hotels Group vs. Zhejiang Juhua Co
Performance |
| Timeline |
| BTG Hotels Group |
| Zhejiang Juhua |
BTG Hotels and Zhejiang Juhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Hotels and Zhejiang Juhua
The main advantage of trading using opposite BTG Hotels and Zhejiang Juhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Hotels position performs unexpectedly, Zhejiang Juhua 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 Zhejiang Juhua will offset losses from the drop in Zhejiang Juhua's long position.| BTG Hotels vs. Vanfund Urban Investment | BTG Hotels vs. Postal Savings Bank | BTG Hotels vs. Jointo Energy Investment | BTG Hotels vs. Zhejiang HISUN Biomaterials |
| Zhejiang Juhua vs. Hunan Investment Group | Zhejiang Juhua vs. BTG Hotels Group | Zhejiang Juhua vs. Shenzhen Centralcon Investment | Zhejiang Juhua vs. Harbin Hatou Investment |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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