Correlation Between BTG Hotels and Biwin Storage
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By analyzing existing cross correlation between BTG Hotels Group and Biwin Storage Technology, you can compare the effects of market volatilities on BTG Hotels and Biwin Storage 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 Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Hotels and Biwin Storage.
Diversification Opportunities for BTG Hotels and Biwin Storage
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BTG and Biwin is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding BTG Hotels Group and Biwin Storage Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biwin Storage 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 Biwin Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biwin Storage Technology has no effect on the direction of BTG Hotels i.e., BTG Hotels and Biwin Storage go up and down completely randomly.
Pair Corralation between BTG Hotels and Biwin Storage
Assuming the 90 days trading horizon BTG Hotels is expected to generate 1.34 times less return on investment than Biwin Storage. But when comparing it to its historical volatility, BTG Hotels Group is 1.93 times less risky than Biwin Storage. It trades about 0.16 of its potential returns per unit of risk. Biwin Storage Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 4,339 in Biwin Storage Technology on August 29, 2024 and sell it today you would earn a total of 1,337 from holding Biwin Storage Technology or generate 30.81% 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. Biwin Storage Technology
Performance |
| Timeline |
| BTG Hotels Group |
| Biwin Storage Technology |
BTG Hotels and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Hotels and Biwin Storage
The main advantage of trading using opposite BTG Hotels and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Hotels position performs unexpectedly, Biwin Storage 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 Biwin Storage will offset losses from the drop in Biwin Storage's long position.| BTG Hotels vs. Datang HuaYin Electric | BTG Hotels vs. YLZ Information Tech | BTG Hotels vs. Focus Media Information | BTG Hotels vs. Yonyou Auto Information |
| Biwin Storage vs. China State Construction | Biwin Storage vs. Huafa Industrial Co | Biwin Storage vs. China International Capital | Biwin Storage vs. Kweichow Moutai 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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