Correlation Between Jinling Hotel and BTG Hotels
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By analyzing existing cross correlation between Jinling Hotel Corp and BTG Hotels Group, you can compare the effects of market volatilities on Jinling Hotel 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 Jinling Hotel with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and BTG Hotels.
Diversification Opportunities for Jinling Hotel and BTG Hotels
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinling and BTG is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp 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 Jinling Hotel 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 Jinling Hotel Corp 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 Jinling Hotel i.e., Jinling Hotel and BTG Hotels go up and down completely randomly.
Pair Corralation between Jinling Hotel and BTG Hotels
Assuming the 90 days trading horizon Jinling Hotel Corp is expected to generate 1.2 times more return on investment than BTG Hotels. However, Jinling Hotel is 1.2 times more volatile than BTG Hotels Group. It trades about -0.11 of its potential returns per unit of risk. BTG Hotels Group is currently generating about -0.25 per unit of risk. If you would invest 706.00 in Jinling Hotel Corp on October 24, 2024 and sell it today you would lose (38.00) from holding Jinling Hotel Corp or give up 5.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinling Hotel Corp vs. BTG Hotels Group
Performance |
| Timeline |
| Jinling Hotel Corp |
| BTG Hotels Group |
Jinling Hotel and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinling Hotel and BTG Hotels
The main advantage of trading using opposite Jinling Hotel and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel 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.| Jinling Hotel vs. XiaMen HongXin Electron tech | Jinling Hotel vs. Xiamen Jihong Package | Jinling Hotel vs. Ligao Foods CoLtd | Jinling Hotel vs. Linewell Software Co |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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