Correlation Between Huaxia Fund and BTG Hotels
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By analyzing existing cross correlation between Huaxia Fund Management and BTG Hotels Group, you can compare the effects of market volatilities on Huaxia Fund 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 Huaxia Fund with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and BTG Hotels.
Diversification Opportunities for Huaxia Fund and BTG Hotels
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Huaxia and BTG is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management 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 Huaxia Fund 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 Huaxia Fund Management 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 Huaxia Fund i.e., Huaxia Fund and BTG Hotels go up and down completely randomly.
Pair Corralation between Huaxia Fund and BTG Hotels
Assuming the 90 days trading horizon Huaxia Fund is expected to generate 3.11 times less return on investment than BTG Hotels. But when comparing it to its historical volatility, Huaxia Fund Management is 2.4 times less risky than BTG Hotels. It trades about 0.1 of its potential returns per unit of risk. BTG Hotels Group is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,209 in BTG Hotels Group on September 25, 2024 and sell it today you would earn a total of 270.00 from holding BTG Hotels Group or generate 22.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Huaxia Fund Management vs. BTG Hotels Group
Performance |
Timeline |
Huaxia Fund Management |
BTG Hotels Group |
Huaxia Fund and BTG Hotels Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Huaxia Fund and BTG Hotels
The main advantage of trading using opposite Huaxia Fund and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund 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.Huaxia Fund vs. Industrial and Commercial | Huaxia Fund vs. Kweichow Moutai Co | Huaxia Fund vs. Agricultural Bank of | Huaxia Fund vs. China Mobile Limited |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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