Correlation Between BTG Hotels and Jinling Hotel
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By analyzing existing cross correlation between BTG Hotels Group and Jinling Hotel Corp, you can compare the effects of market volatilities on BTG Hotels and Jinling Hotel 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 Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Hotels and Jinling Hotel.
Diversification Opportunities for BTG Hotels and Jinling Hotel
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BTG and Jinling is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding BTG Hotels Group and Jinling Hotel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinling Hotel Corp 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 Jinling Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinling Hotel Corp has no effect on the direction of BTG Hotels i.e., BTG Hotels and Jinling Hotel go up and down completely randomly.
Pair Corralation between BTG Hotels and Jinling Hotel
Assuming the 90 days trading horizon BTG Hotels Group is expected to generate 1.04 times more return on investment than Jinling Hotel. However, BTG Hotels is 1.04 times more volatile than Jinling Hotel Corp. It trades about 0.07 of its potential returns per unit of risk. Jinling Hotel Corp is currently generating about 0.04 per unit of risk. If you would invest 1,190 in BTG Hotels Group on October 24, 2024 and sell it today you would earn a total of 156.00 from holding BTG Hotels Group or generate 13.11% 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. Jinling Hotel Corp
Performance |
| Timeline |
| BTG Hotels Group |
| Jinling Hotel Corp |
BTG Hotels and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Hotels and Jinling Hotel
The main advantage of trading using opposite BTG Hotels and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Hotels position performs unexpectedly, Jinling Hotel 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 Jinling Hotel will offset losses from the drop in Jinling Hotel's long position.| BTG Hotels vs. Zoje Resources Investment | BTG Hotels vs. Kunwu Jiuding Investment | BTG Hotels vs. Vanfund Urban Investment | BTG Hotels vs. Hengli Industrial Development |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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