Correlation Between BTG Hotels and China Citic
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By analyzing existing cross correlation between BTG Hotels Group and China Citic Bank, you can compare the effects of market volatilities on BTG Hotels and China Citic 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 China Citic. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Hotels and China Citic.
Diversification Opportunities for BTG Hotels and China Citic
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BTG and China is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding BTG Hotels Group and China Citic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Citic Bank 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 China Citic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Citic Bank has no effect on the direction of BTG Hotels i.e., BTG Hotels and China Citic go up and down completely randomly.
Pair Corralation between BTG Hotels and China Citic
Assuming the 90 days trading horizon BTG Hotels Group is expected to generate 1.43 times more return on investment than China Citic. However, BTG Hotels is 1.43 times more volatile than China Citic Bank. It trades about 0.14 of its potential returns per unit of risk. China Citic Bank is currently generating about 0.18 per unit of risk. If you would invest 1,500 in BTG Hotels Group on September 13, 2024 and sell it today you would earn a total of 98.00 from holding BTG Hotels Group or generate 6.53% 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. China Citic Bank
Performance |
| Timeline |
| BTG Hotels Group |
| China Citic Bank |
BTG Hotels and China Citic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Hotels and China Citic
The main advantage of trading using opposite BTG Hotels and China Citic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Hotels position performs unexpectedly, China Citic 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 China Citic will offset losses from the drop in China Citic's long position.| BTG Hotels vs. Iat Automobile Technology | BTG Hotels vs. Shaanxi Broadcast TV | BTG Hotels vs. Zhengping RoadBridge Constr | BTG Hotels vs. Maxvision Technology Corp |
| China Citic vs. Guangdong Qunxing Toys | China Citic vs. Haima Automobile Group | China Citic vs. Shandong Iron and | China Citic vs. Anhui Jianghuai Automobile |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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