Correlation Between BTG Hotels and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between BTG Hotels Group and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on BTG Hotels and Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Hotels and Fiberhome Telecommunicatio.
Diversification Opportunities for BTG Hotels and Fiberhome Telecommunicatio
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BTG and Fiberhome is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding BTG Hotels Group and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiberhome Telecommunicatio has no effect on the direction of BTG Hotels i.e., BTG Hotels and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between BTG Hotels and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon BTG Hotels Group is expected to generate 0.65 times more return on investment than Fiberhome Telecommunicatio. However, BTG Hotels Group is 1.53 times less risky than Fiberhome Telecommunicatio. It trades about 0.04 of its potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about -0.04 per unit of risk. If you would invest 1,429 in BTG Hotels Group on August 29, 2024 and sell it today you would earn a total of 16.00 from holding BTG Hotels Group or generate 1.12% 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. Fiberhome Telecommunication Te
Performance |
| Timeline |
| BTG Hotels Group |
| Fiberhome Telecommunicatio |
BTG Hotels and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Hotels and Fiberhome Telecommunicatio
The main advantage of trading using opposite BTG Hotels and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Hotels position performs unexpectedly, Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio will offset losses from the drop in Fiberhome Telecommunicatio's long position.| BTG Hotels vs. Biwin Storage Technology | BTG Hotels vs. PetroChina Co Ltd | BTG Hotels vs. Industrial and Commercial | BTG Hotels vs. China Construction Bank |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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