Correlation Between BTG Hotels and Zhengzhou Coal
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By analyzing existing cross correlation between BTG Hotels Group and Zhengzhou Coal Mining, you can compare the effects of market volatilities on BTG Hotels and Zhengzhou Coal 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 Zhengzhou Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Hotels and Zhengzhou Coal.
Diversification Opportunities for BTG Hotels and Zhengzhou Coal
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BTG and Zhengzhou is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding BTG Hotels Group and Zhengzhou Coal Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengzhou Coal Mining 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 Zhengzhou Coal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengzhou Coal Mining has no effect on the direction of BTG Hotels i.e., BTG Hotels and Zhengzhou Coal go up and down completely randomly.
Pair Corralation between BTG Hotels and Zhengzhou Coal
Assuming the 90 days trading horizon BTG Hotels Group is expected to under-perform the Zhengzhou Coal. In addition to that, BTG Hotels is 1.21 times more volatile than Zhengzhou Coal Mining. It trades about -0.35 of its total potential returns per unit of risk. Zhengzhou Coal Mining is currently generating about 0.05 per unit of volatility. If you would invest 1,291 in Zhengzhou Coal Mining on October 18, 2024 and sell it today you would earn a total of 18.00 from holding Zhengzhou Coal Mining or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Hotels Group vs. Zhengzhou Coal Mining
Performance |
| Timeline |
| BTG Hotels Group |
| Zhengzhou Coal Mining |
BTG Hotels and Zhengzhou Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Hotels and Zhengzhou Coal
The main advantage of trading using opposite BTG Hotels and Zhengzhou Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Hotels position performs unexpectedly, Zhengzhou Coal 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 Zhengzhou Coal will offset losses from the drop in Zhengzhou Coal's long position.| BTG Hotels vs. CareRay Digital Medical | BTG Hotels vs. Sino Platinum Metals Co | BTG Hotels vs. Ningbo Ligong Online | BTG Hotels vs. Tinavi Medical Technologies |
| Zhengzhou Coal vs. Miracll Chemicals Co | Zhengzhou Coal vs. Dymatic Chemicals | Zhengzhou Coal vs. Shenzhen Noposion Agrochemicals | Zhengzhou Coal vs. Yingde Greatchem Chemicals |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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