Correlation Between GRINM Semiconductor and BTG Hotels
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By analyzing existing cross correlation between GRINM Semiconductor Materials and BTG Hotels Group, you can compare the effects of market volatilities on GRINM 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 GRINM Semiconductor with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRINM Semiconductor and BTG Hotels.
Diversification Opportunities for GRINM Semiconductor and BTG Hotels
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GRINM and BTG is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding GRINM Semiconductor Materials 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 GRINM 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 GRINM Semiconductor Materials 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 GRINM Semiconductor i.e., GRINM Semiconductor and BTG Hotels go up and down completely randomly.
Pair Corralation between GRINM Semiconductor and BTG Hotels
Assuming the 90 days trading horizon GRINM Semiconductor Materials is expected to generate 1.4 times more return on investment than BTG Hotels. However, GRINM Semiconductor is 1.4 times more volatile than BTG Hotels Group. It trades about 0.0 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 1,351 in GRINM Semiconductor Materials on August 25, 2024 and sell it today you would lose (164.00) from holding GRINM Semiconductor Materials or give up 12.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRINM Semiconductor Materials vs. BTG Hotels Group
Performance |
| Timeline |
| GRINM Semiconductor |
| BTG Hotels Group |
GRINM Semiconductor and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRINM Semiconductor and BTG Hotels
The main advantage of trading using opposite GRINM Semiconductor and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRINM 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.| GRINM Semiconductor vs. Lutian Machinery Co | GRINM Semiconductor vs. China Longyuan Power | GRINM Semiconductor vs. Changshu Tongrun Auto | GRINM 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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