Correlation Between Nanjing OLO and BTG Hotels
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By analyzing existing cross correlation between Nanjing OLO Home and BTG Hotels Group, you can compare the effects of market volatilities on Nanjing OLO 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 Nanjing OLO with a short position of BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing OLO and BTG Hotels.
Diversification Opportunities for Nanjing OLO and BTG Hotels
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nanjing and BTG is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing OLO Home 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 Nanjing OLO 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 Nanjing OLO Home 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 Nanjing OLO i.e., Nanjing OLO and BTG Hotels go up and down completely randomly.
Pair Corralation between Nanjing OLO and BTG Hotels
Assuming the 90 days trading horizon Nanjing OLO is expected to generate 1.1 times less return on investment than BTG Hotels. In addition to that, Nanjing OLO is 1.04 times more volatile than BTG Hotels Group. It trades about 0.18 of its total potential returns per unit of risk. BTG Hotels Group is currently generating about 0.21 per unit of volatility. If you would invest 1,139 in BTG Hotels Group on September 11, 2024 and sell it today you would earn a total of 432.00 from holding BTG Hotels Group or generate 37.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Nanjing OLO Home vs. BTG Hotels Group
Performance |
Timeline |
Nanjing OLO Home |
BTG Hotels Group |
Nanjing OLO and BTG Hotels Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nanjing OLO and BTG Hotels
The main advantage of trading using opposite Nanjing OLO and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing OLO 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.Nanjing OLO vs. Lutian Machinery Co | Nanjing OLO vs. PetroChina Co Ltd | Nanjing OLO vs. Bank of China | Nanjing OLO vs. Gansu Jiu Steel |
BTG Hotels vs. Lutian Machinery Co | BTG Hotels vs. PetroChina Co Ltd | BTG Hotels vs. Bank of China | BTG Hotels vs. Gansu Jiu Steel |
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 Stocks Directory module to find actively traded stocks across global markets.
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