Correlation Between BTG Hotels and Guangdong Liantai
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By analyzing existing cross correlation between BTG Hotels Group and Guangdong Liantai Environmental, you can compare the effects of market volatilities on BTG Hotels and Guangdong Liantai 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 Guangdong Liantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Hotels and Guangdong Liantai.
Diversification Opportunities for BTG Hotels and Guangdong Liantai
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BTG and Guangdong is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding BTG Hotels Group and Guangdong Liantai Environmenta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Liantai 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 Guangdong Liantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Liantai has no effect on the direction of BTG Hotels i.e., BTG Hotels and Guangdong Liantai go up and down completely randomly.
Pair Corralation between BTG Hotels and Guangdong Liantai
Assuming the 90 days trading horizon BTG Hotels is expected to generate 1.3 times less return on investment than Guangdong Liantai. In addition to that, BTG Hotels is 1.02 times more volatile than Guangdong Liantai Environmental. It trades about 0.08 of its total potential returns per unit of risk. Guangdong Liantai Environmental is currently generating about 0.1 per unit of volatility. If you would invest 312.00 in Guangdong Liantai Environmental on September 26, 2024 and sell it today you would earn a total of 92.00 from holding Guangdong Liantai Environmental or generate 29.49% 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. Guangdong Liantai Environmenta
Performance |
| Timeline |
| BTG Hotels Group |
| Guangdong Liantai |
BTG Hotels and Guangdong Liantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Hotels and Guangdong Liantai
The main advantage of trading using opposite BTG Hotels and Guangdong Liantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Hotels position performs unexpectedly, Guangdong Liantai 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 Guangdong Liantai will offset losses from the drop in Guangdong Liantai's long position.| BTG Hotels vs. Bank of China | BTG Hotels vs. Kweichow Moutai Co | BTG Hotels vs. PetroChina Co Ltd | BTG Hotels vs. Bank of Communications |
| Guangdong Liantai vs. Ming Yang Smart | Guangdong Liantai vs. 159681 | Guangdong Liantai vs. 159005 | Guangdong Liantai vs. Loctek Ergonomic Technology |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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