Correlation Between Nexchip Semiconductor and BTG Hotels
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nexchip Semiconductor Corp and BTG Hotels Group, you can compare the effects of market volatilities on Nexchip Semiconductor 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 Nexchip Semiconductor with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexchip Semiconductor and BTG Hotels.
Diversification Opportunities for Nexchip Semiconductor and BTG Hotels
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nexchip and BTG is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Nexchip Semiconductor Corp 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 Nexchip Semiconductor 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 Nexchip Semiconductor Corp 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 Nexchip Semiconductor i.e., Nexchip Semiconductor and BTG Hotels go up and down completely randomly.
Pair Corralation between Nexchip Semiconductor and BTG Hotels
Assuming the 90 days trading horizon Nexchip Semiconductor Corp is expected to generate 1.42 times more return on investment than BTG Hotels. However, Nexchip Semiconductor is 1.42 times more volatile than BTG Hotels Group. It trades about 0.06 of its potential returns per unit of risk. BTG Hotels Group is currently generating about -0.02 per unit of risk. If you would invest 1,651 in Nexchip Semiconductor Corp on August 25, 2024 and sell it today you would earn a total of 793.00 from holding Nexchip Semiconductor Corp or generate 48.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexchip Semiconductor Corp vs. BTG Hotels Group
Performance |
| Timeline |
| Nexchip Semiconductor |
| BTG Hotels Group |
Nexchip Semiconductor and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexchip Semiconductor and BTG Hotels
The main advantage of trading using opposite Nexchip Semiconductor and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexchip Semiconductor 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.| Nexchip Semiconductor vs. Lutian Machinery Co | Nexchip Semiconductor vs. China Longyuan Power | Nexchip Semiconductor vs. Changshu Tongrun Auto | Nexchip Semiconductor vs. PetroChina Co Ltd |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |