Correlation Between China Construction and BTG Hotels
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Construction Bank and BTG Hotels Group, you can compare the effects of market volatilities on China Construction 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 Construction with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and BTG Hotels.
Diversification Opportunities for China Construction and BTG Hotels
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and BTG is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank 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 Construction 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 Construction Bank 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 Construction i.e., China Construction and BTG Hotels go up and down completely randomly.
Pair Corralation between China Construction and BTG Hotels
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.62 times more return on investment than BTG Hotels. However, China Construction Bank is 1.62 times less risky than BTG Hotels. It trades about 0.05 of its potential returns per unit of risk. BTG Hotels Group is currently generating about -0.03 per unit of risk. If you would invest 660.00 in China Construction Bank on August 29, 2024 and sell it today you would earn a total of 138.00 from holding China Construction Bank or generate 20.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. BTG Hotels Group
Performance |
| Timeline |
| China Construction Bank |
| BTG Hotels Group |
China Construction and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and BTG Hotels
The main advantage of trading using opposite China Construction and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction 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 Construction vs. Zhongtong Guomai Communication | China Construction vs. China Satellite Communications | China Construction vs. SUNSEA Telecommunications Co | China Construction vs. Omnijoi Media Corp |
| BTG Hotels vs. Biwin Storage Technology | BTG Hotels vs. PetroChina Co Ltd | BTG Hotels vs. Industrial and Commercial | BTG Hotels vs. China Construction Bank |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |