Correlation Between BTG Hotels and Bus Online
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By analyzing existing cross correlation between BTG Hotels Group and Bus Online Co, you can compare the effects of market volatilities on BTG Hotels and Bus Online 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 BTG Hotels with a short position of Bus Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Hotels and Bus Online.
Diversification Opportunities for BTG Hotels and Bus Online
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BTG and Bus is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding BTG Hotels Group and Bus Online Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bus Online and BTG Hotels 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 BTG Hotels Group are associated (or correlated) with Bus Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bus Online has no effect on the direction of BTG Hotels i.e., BTG Hotels and Bus Online go up and down completely randomly.
Pair Corralation between BTG Hotels and Bus Online
Assuming the 90 days trading horizon BTG Hotels Group is expected to under-perform the Bus Online. But the stock apears to be less risky and, when comparing its historical volatility, BTG Hotels Group is 1.7 times less risky than Bus Online. The stock trades about -0.09 of its potential returns per unit of risk. The Bus Online Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 464.00 in Bus Online Co on December 30, 2024 and sell it today you would lose (17.00) from holding Bus Online Co or give up 3.66% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
BTG Hotels Group vs. Bus Online Co
Performance |
Timeline |
BTG Hotels Group |
Bus Online |
BTG Hotels and Bus Online Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BTG Hotels and Bus Online
The main advantage of trading using opposite BTG Hotels and Bus Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Hotels position performs unexpectedly, Bus Online 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 Bus Online will offset losses from the drop in Bus Online's long position.BTG Hotels vs. Shandong Publishing Media | BTG Hotels vs. Epoxy Base Electronic | BTG Hotels vs. Jiangxi Lianchuang Opto electronic | BTG Hotels vs. Weihai Honglin Electronic |
Bus Online vs. Shengda Mining Co | Bus Online vs. Lonkey Industrial Co | Bus Online vs. Xinxiang Chemical Fiber | Bus Online vs. Suzhou Douson Drilling |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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