Correlation Between China Railway and BTG Hotels
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By analyzing existing cross correlation between China Railway Group and BTG Hotels Group, you can compare the effects of market volatilities on China Railway 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 China Railway with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and BTG Hotels.
Diversification Opportunities for China Railway and BTG Hotels
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and BTG is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Group 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 China Railway 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 China Railway Group 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 China Railway i.e., China Railway and BTG Hotels go up and down completely randomly.
Pair Corralation between China Railway and BTG Hotels
Assuming the 90 days trading horizon China Railway Group is expected to generate 0.93 times more return on investment than BTG Hotels. However, China Railway Group is 1.08 times less risky than BTG Hotels. It trades about 0.0 of its potential returns per unit of risk. BTG Hotels Group is currently generating about -0.02 per unit of risk. If you would invest 634.00 in China Railway Group on November 3, 2024 and sell it today you would lose (42.00) from holding China Railway Group or give up 6.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Group vs. BTG Hotels Group
Performance |
| Timeline |
| China Railway Group |
| BTG Hotels Group |
China Railway and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and BTG Hotels
The main advantage of trading using opposite China Railway and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway 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.| China Railway vs. Simei Media Co | China Railway vs. Duzhe Publishing Media | China Railway vs. Jiangsu Phoenix Publishing | China Railway vs. Threes Company Media |
| BTG Hotels vs. Liaoning Dingjide Petrochemical | BTG Hotels vs. Shandong Sinoglory Health | BTG Hotels vs. Sanbo Hospital Management | BTG Hotels vs. Lier Chemical 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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