Correlation Between Anyang Iron and BTG Hotels
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By analyzing existing cross correlation between Anyang Iron Steel and BTG Hotels Group, you can compare the effects of market volatilities on Anyang Iron and BTG Hotels 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 Anyang Iron with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anyang Iron and BTG Hotels.
Diversification Opportunities for Anyang Iron and BTG Hotels
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anyang and BTG is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Anyang Iron Steel and BTG Hotels Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTG Hotels Group and Anyang Iron 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 Anyang Iron Steel are associated (or correlated) with BTG Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTG Hotels Group has no effect on the direction of Anyang Iron i.e., Anyang Iron and BTG Hotels go up and down completely randomly.
Pair Corralation between Anyang Iron and BTG Hotels
Assuming the 90 days trading horizon Anyang Iron Steel is expected to generate 1.17 times more return on investment than BTG Hotels. However, Anyang Iron is 1.17 times more volatile than BTG Hotels Group. It trades about -0.01 of its potential returns per unit of risk. BTG Hotels Group is currently generating about -0.05 per unit of risk. If you would invest 221.00 in Anyang Iron Steel on October 28, 2024 and sell it today you would lose (47.00) from holding Anyang Iron Steel or give up 21.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anyang Iron Steel vs. BTG Hotels Group
Performance |
| Timeline |
| Anyang Iron Steel |
| BTG Hotels Group |
Anyang Iron and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anyang Iron and BTG Hotels
The main advantage of trading using opposite Anyang Iron and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anyang Iron position performs unexpectedly, BTG Hotels 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 BTG Hotels will offset losses from the drop in BTG Hotels' long position.| Anyang Iron vs. Zhongshan Public Utilities | Anyang Iron vs. Western Metal Materials | Anyang Iron vs. Ningbo Fujia Industrial | Anyang Iron vs. JCHX Mining Management |
| BTG Hotels vs. Nanjing Putian Telecommunications | BTG Hotels vs. State Grid InformationCommunication | BTG Hotels vs. Anhui Jianghuai Automobile | BTG Hotels vs. Xinjiang Communications Construction |
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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