Correlation Between BTG Hotels and JCHX Mining
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By analyzing existing cross correlation between BTG Hotels Group and JCHX Mining Management, you can compare the effects of market volatilities on BTG Hotels and JCHX Mining 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 JCHX Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Hotels and JCHX Mining.
Diversification Opportunities for BTG Hotels and JCHX Mining
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between BTG and JCHX is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding BTG Hotels Group and JCHX Mining Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCHX Mining Management 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 JCHX Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCHX Mining Management has no effect on the direction of BTG Hotels i.e., BTG Hotels and JCHX Mining go up and down completely randomly.
Pair Corralation between BTG Hotels and JCHX Mining
Assuming the 90 days trading horizon BTG Hotels Group is expected to under-perform the JCHX Mining. But the stock apears to be less risky and, when comparing its historical volatility, BTG Hotels Group is 1.03 times less risky than JCHX Mining. The stock trades about -0.09 of its potential returns per unit of risk. The JCHX Mining Management is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 3,939 in JCHX Mining Management on December 2, 2024 and sell it today you would lose (157.00) from holding JCHX Mining Management or give up 3.99% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
BTG Hotels Group vs. JCHX Mining Management
Performance |
Timeline |
BTG Hotels Group |
JCHX Mining Management |
BTG Hotels and JCHX Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BTG Hotels and JCHX Mining
The main advantage of trading using opposite BTG Hotels and JCHX Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Hotels position performs unexpectedly, JCHX Mining 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 JCHX Mining will offset losses from the drop in JCHX Mining's long position.BTG Hotels vs. Hangzhou Zhongya Machinery | BTG Hotels vs. Zhongrun Resources Investment | BTG Hotels vs. Gifore Agricultural Machinery | BTG Hotels vs. Harbin Hatou Investment |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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