Correlation Between Shaanxi Broadcast and BTG Hotels
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By analyzing existing cross correlation between Shaanxi Broadcast TV and BTG Hotels Group, you can compare the effects of market volatilities on Shaanxi Broadcast 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 Shaanxi Broadcast with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Broadcast and BTG Hotels.
Diversification Opportunities for Shaanxi Broadcast and BTG Hotels
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shaanxi and BTG is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Broadcast TV 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 Shaanxi Broadcast 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 Shaanxi Broadcast TV 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 Shaanxi Broadcast i.e., Shaanxi Broadcast and BTG Hotels go up and down completely randomly.
Pair Corralation between Shaanxi Broadcast and BTG Hotels
Assuming the 90 days trading horizon Shaanxi Broadcast TV is expected to generate 1.14 times more return on investment than BTG Hotels. However, Shaanxi Broadcast is 1.14 times more volatile than BTG Hotels Group. It trades about 0.21 of its potential returns per unit of risk. BTG Hotels Group is currently generating about 0.21 per unit of risk. If you would invest 280.00 in Shaanxi Broadcast TV on September 14, 2024 and sell it today you would earn a total of 29.00 from holding Shaanxi Broadcast TV or generate 10.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Broadcast TV vs. BTG Hotels Group
Performance |
| Timeline |
| Shaanxi Broadcast |
| BTG Hotels Group |
Shaanxi Broadcast and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Broadcast and BTG Hotels
The main advantage of trading using opposite Shaanxi Broadcast and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Broadcast 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.| Shaanxi Broadcast vs. Lutian Machinery Co | Shaanxi Broadcast vs. PetroChina Co Ltd | Shaanxi Broadcast vs. Bank of China | Shaanxi Broadcast vs. China Citic Bank |
| BTG Hotels vs. Iat Automobile Technology | BTG Hotels vs. Shaanxi Broadcast TV | BTG Hotels vs. Zhengping RoadBridge Constr | BTG Hotels vs. Maxvision Technology Corp |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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