Correlation Between Jinhui Liquor and BTG Hotels
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By analyzing existing cross correlation between Jinhui Liquor Co and BTG Hotels Group, you can compare the effects of market volatilities on Jinhui Liquor 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 Jinhui Liquor with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and BTG Hotels.
Diversification Opportunities for Jinhui Liquor and BTG Hotels
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinhui and BTG is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co 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 Jinhui Liquor 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 Jinhui Liquor Co 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 Jinhui Liquor i.e., Jinhui Liquor and BTG Hotels go up and down completely randomly.
Pair Corralation between Jinhui Liquor and BTG Hotels
Assuming the 90 days trading horizon Jinhui Liquor Co is expected to generate 1.08 times more return on investment than BTG Hotels. However, Jinhui Liquor is 1.08 times more volatile than BTG Hotels Group. It trades about -0.37 of its potential returns per unit of risk. BTG Hotels Group is currently generating about -0.48 per unit of risk. If you would invest 2,066 in Jinhui Liquor Co on October 11, 2024 and sell it today you would lose (259.00) from holding Jinhui Liquor Co or give up 12.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Liquor Co vs. BTG Hotels Group
Performance |
| Timeline |
| Jinhui Liquor |
| BTG Hotels Group |
Jinhui Liquor and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and BTG Hotels
The main advantage of trading using opposite Jinhui Liquor and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor 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.| Jinhui Liquor vs. Sunny Loan Top | Jinhui Liquor vs. Xinxiang Chemical Fiber | Jinhui Liquor vs. Wuxi Chemical Equipment | Jinhui Liquor vs. Semiconductor Manufacturing Intl |
| BTG Hotels vs. Sichuan Teway Food | BTG Hotels vs. Qingdao Foods Co | BTG Hotels vs. Jinhui Liquor Co | BTG Hotels vs. Jiajia Food Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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