Correlation Between Zhengping RoadBridge and BTG Hotels
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By analyzing existing cross correlation between Zhengping RoadBridge Constr and BTG Hotels Group, you can compare the effects of market volatilities on Zhengping RoadBridge 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 Zhengping RoadBridge with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengping RoadBridge and BTG Hotels.
Diversification Opportunities for Zhengping RoadBridge and BTG Hotels
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhengping and BTG is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Zhengping RoadBridge Constr 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 Zhengping RoadBridge 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 Zhengping RoadBridge Constr 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 Zhengping RoadBridge i.e., Zhengping RoadBridge and BTG Hotels go up and down completely randomly.
Pair Corralation between Zhengping RoadBridge and BTG Hotels
Assuming the 90 days trading horizon Zhengping RoadBridge Constr is expected to generate 1.92 times more return on investment than BTG Hotels. However, Zhengping RoadBridge is 1.92 times more volatile than BTG Hotels Group. It trades about 0.02 of its potential returns per unit of risk. BTG Hotels Group is currently generating about 0.01 per unit of risk. If you would invest 387.00 in Zhengping RoadBridge Constr on September 14, 2024 and sell it today you would earn a total of 2.00 from holding Zhengping RoadBridge Constr or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhengping RoadBridge Constr vs. BTG Hotels Group
Performance |
| Timeline |
| Zhengping RoadBridge |
| BTG Hotels Group |
Zhengping RoadBridge and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengping RoadBridge and BTG Hotels
The main advantage of trading using opposite Zhengping RoadBridge and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengping RoadBridge 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.| Zhengping RoadBridge vs. Ming Yang Smart | Zhengping RoadBridge vs. 159681 | Zhengping RoadBridge vs. 159005 | Zhengping RoadBridge vs. Loctek Ergonomic Technology |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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