Correlation Between Aofu Environmental and BTG Hotels
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By analyzing existing cross correlation between Aofu Environmental Technology and BTG Hotels Group, you can compare the effects of market volatilities on Aofu Environmental 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 Aofu Environmental with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aofu Environmental and BTG Hotels.
Diversification Opportunities for Aofu Environmental and BTG Hotels
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aofu and BTG is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Aofu Environmental Technology 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 Aofu Environmental 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 Aofu Environmental Technology 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 Aofu Environmental i.e., Aofu Environmental and BTG Hotels go up and down completely randomly.
Pair Corralation between Aofu Environmental and BTG Hotels
Assuming the 90 days trading horizon Aofu Environmental is expected to generate 1.04 times less return on investment than BTG Hotels. In addition to that, Aofu Environmental is 1.34 times more volatile than BTG Hotels Group. It trades about 0.05 of its total potential returns per unit of risk. BTG Hotels Group is currently generating about 0.07 per unit of volatility. If you would invest 1,261 in BTG Hotels Group on September 27, 2024 and sell it today you would earn a total of 232.00 from holding BTG Hotels Group or generate 18.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aofu Environmental Technology vs. BTG Hotels Group
Performance |
| Timeline |
| Aofu Environmental |
| BTG Hotels Group |
Aofu Environmental and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aofu Environmental and BTG Hotels
The main advantage of trading using opposite Aofu Environmental and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aofu Environmental 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.| Aofu Environmental vs. Hunan TV Broadcast | Aofu Environmental vs. Ningxia Xiaoming Agriculture | Aofu Environmental vs. Anhui Transport Consulting | Aofu Environmental vs. Chengdu Xinzhu RoadBridge |
| BTG Hotels vs. Bank of China | BTG Hotels vs. Kweichow Moutai Co | BTG Hotels vs. PetroChina Co Ltd | BTG Hotels vs. Bank of Communications |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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