Correlation Between CareRay Digital and BTG Hotels
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By analyzing existing cross correlation between CareRay Digital Medical and BTG Hotels Group, you can compare the effects of market volatilities on CareRay Digital 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 CareRay Digital with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareRay Digital and BTG Hotels.
Diversification Opportunities for CareRay Digital and BTG Hotels
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CareRay and BTG is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding CareRay Digital Medical 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 CareRay Digital 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 CareRay Digital Medical 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 CareRay Digital i.e., CareRay Digital and BTG Hotels go up and down completely randomly.
Pair Corralation between CareRay Digital and BTG Hotels
Assuming the 90 days trading horizon CareRay Digital Medical is expected to generate 1.46 times more return on investment than BTG Hotels. However, CareRay Digital is 1.46 times more volatile than BTG Hotels Group. It trades about -0.02 of its potential returns per unit of risk. BTG Hotels Group is currently generating about -0.05 per unit of risk. If you would invest 2,462 in CareRay Digital Medical on October 31, 2024 and sell it today you would lose (1,040) from holding CareRay Digital Medical or give up 42.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CareRay Digital Medical vs. BTG Hotels Group
Performance |
| Timeline |
| CareRay Digital Medical |
| BTG Hotels Group |
CareRay Digital and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareRay Digital and BTG Hotels
The main advantage of trading using opposite CareRay Digital and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareRay Digital 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.| CareRay Digital vs. Caihong Display Devices | CareRay Digital vs. Everdisplay Optronics Shanghai | CareRay Digital vs. Tongyu Communication | CareRay Digital vs. Guangzhou Dongfang Hotel |
| BTG Hotels vs. Innovative Medical Management | BTG Hotels vs. Allmed Medical Products | BTG Hotels vs. Hengkang Medical Group | BTG Hotels vs. Giantec Semiconductor Corp |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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