Correlation Between BTG Hotels and Eastroc Beverage
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By analyzing existing cross correlation between BTG Hotels Group and Eastroc Beverage Group, you can compare the effects of market volatilities on BTG Hotels and Eastroc Beverage 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 Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Hotels and Eastroc Beverage.
Diversification Opportunities for BTG Hotels and Eastroc Beverage
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BTG and Eastroc is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding BTG Hotels Group and Eastroc Beverage Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastroc Beverage 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 Eastroc Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastroc Beverage has no effect on the direction of BTG Hotels i.e., BTG Hotels and Eastroc Beverage go up and down completely randomly.
Pair Corralation between BTG Hotels and Eastroc Beverage
Assuming the 90 days trading horizon BTG Hotels Group is expected to under-perform the Eastroc Beverage. But the stock apears to be less risky and, when comparing its historical volatility, BTG Hotels Group is 1.04 times less risky than Eastroc Beverage. The stock trades about -0.54 of its potential returns per unit of risk. The Eastroc Beverage Group is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 24,250 in Eastroc Beverage Group on October 12, 2024 and sell it today you would earn a total of 2,890 from holding Eastroc Beverage Group or generate 11.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTG Hotels Group vs. Eastroc Beverage Group
Performance |
| Timeline |
| BTG Hotels Group |
| Eastroc Beverage |
BTG Hotels and Eastroc Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Hotels and Eastroc Beverage
The main advantage of trading using opposite BTG Hotels and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Hotels position performs unexpectedly, Eastroc Beverage 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 Eastroc Beverage will offset losses from the drop in Eastroc Beverage's long position.| BTG Hotels vs. Sichuan Teway Food | BTG Hotels vs. Qingdao Foods Co | BTG Hotels vs. Jinhui Liquor Co | BTG Hotels vs. Jiajia Food Group |
| Eastroc Beverage vs. Quectel Wireless Solutions | Eastroc Beverage vs. Henan Shuanghui Investment | Eastroc Beverage vs. Tieling Newcity Investment | Eastroc Beverage vs. Dongfeng Automobile Co |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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