Correlation Between BTG Hotels and IRay Technology
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By analyzing existing cross correlation between BTG Hotels Group and iRay Technology Co, you can compare the effects of market volatilities on BTG Hotels and IRay Technology 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 IRay Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Hotels and IRay Technology.
Diversification Opportunities for BTG Hotels and IRay Technology
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BTG and IRay is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding BTG Hotels Group and iRay Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iRay Technology 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 IRay Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iRay Technology has no effect on the direction of BTG Hotels i.e., BTG Hotels and IRay Technology go up and down completely randomly.
Pair Corralation between BTG Hotels and IRay Technology
Assuming the 90 days trading horizon BTG Hotels Group is expected to generate 0.6 times more return on investment than IRay Technology. However, BTG Hotels Group is 1.66 times less risky than IRay Technology. It trades about -0.01 of its potential returns per unit of risk. iRay Technology Co is currently generating about -0.02 per unit of risk. If you would invest 1,845 in BTG Hotels Group on September 12, 2024 and sell it today you would lose (274.00) from holding BTG Hotels Group or give up 14.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.68% |
| Values | Daily Returns |
BTG Hotels Group vs. iRay Technology Co
Performance |
| Timeline |
| BTG Hotels Group |
| iRay Technology |
BTG Hotels and IRay Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Hotels and IRay Technology
The main advantage of trading using opposite BTG Hotels and IRay Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Hotels position performs unexpectedly, IRay Technology 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 IRay Technology will offset losses from the drop in IRay Technology's long position.| BTG Hotels vs. Lutian Machinery Co | BTG Hotels vs. PetroChina Co Ltd | BTG Hotels vs. Bank of China | BTG Hotels vs. Gansu Jiu Steel |
| IRay Technology vs. BTG Hotels Group | IRay Technology vs. Huatian Hotel Group | IRay Technology vs. Nanxing Furniture Machinery | IRay Technology vs. Huaxia Fund Management |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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