Correlation Between Zhejiang HISUN and BTG Hotels
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By analyzing existing cross correlation between Zhejiang HISUN Biomaterials and BTG Hotels Group, you can compare the effects of market volatilities on Zhejiang HISUN 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 Zhejiang HISUN with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang HISUN and BTG Hotels.
Diversification Opportunities for Zhejiang HISUN and BTG Hotels
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and BTG is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang HISUN Biomaterials 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 Zhejiang HISUN 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 Zhejiang HISUN Biomaterials 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 Zhejiang HISUN i.e., Zhejiang HISUN and BTG Hotels go up and down completely randomly.
Pair Corralation between Zhejiang HISUN and BTG Hotels
Assuming the 90 days trading horizon Zhejiang HISUN Biomaterials is expected to generate 1.18 times more return on investment than BTG Hotels. However, Zhejiang HISUN is 1.18 times more volatile than BTG Hotels Group. It trades about 0.1 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 1,011 in Zhejiang HISUN Biomaterials on September 3, 2024 and sell it today you would earn a total of 38.00 from holding Zhejiang HISUN Biomaterials or generate 3.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang HISUN Biomaterials vs. BTG Hotels Group
Performance |
| Timeline |
| Zhejiang HISUN Bioma |
| BTG Hotels Group |
Zhejiang HISUN and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang HISUN and BTG Hotels
The main advantage of trading using opposite Zhejiang HISUN and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang HISUN 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.| Zhejiang HISUN vs. Dook Media Group | Zhejiang HISUN vs. Ciwen Media Co | Zhejiang HISUN vs. Metro Investment Development | Zhejiang HISUN vs. Hunan Investment Group |
| BTG Hotels vs. PetroChina Co Ltd | BTG Hotels vs. China Mobile Limited | BTG Hotels vs. Industrial and Commercial | BTG Hotels vs. China Life Insurance |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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