Correlation Between Focus Media and Sportsoul
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By analyzing existing cross correlation between Focus Media Information and Sportsoul Co Ltd, you can compare the effects of market volatilities on Focus Media and Sportsoul 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 Focus Media with a short position of Sportsoul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Media and Sportsoul.
Diversification Opportunities for Focus Media and Sportsoul
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Focus and Sportsoul is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Focus Media Information and Sportsoul Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sportsoul and Focus Media 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 Focus Media Information are associated (or correlated) with Sportsoul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sportsoul has no effect on the direction of Focus Media i.e., Focus Media and Sportsoul go up and down completely randomly.
Pair Corralation between Focus Media and Sportsoul
Assuming the 90 days trading horizon Focus Media Information is expected to generate 0.59 times more return on investment than Sportsoul. However, Focus Media Information is 1.71 times less risky than Sportsoul. It trades about 0.03 of its potential returns per unit of risk. Sportsoul Co Ltd is currently generating about 0.01 per unit of risk. If you would invest 582.00 in Focus Media Information on August 29, 2024 and sell it today you would earn a total of 105.00 from holding Focus Media Information or generate 18.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Focus Media Information vs. Sportsoul Co Ltd
Performance |
| Timeline |
| Focus Media Information |
| Sportsoul |
Focus Media and Sportsoul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Media and Sportsoul
The main advantage of trading using opposite Focus Media and Sportsoul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Media position performs unexpectedly, Sportsoul 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 Sportsoul will offset losses from the drop in Sportsoul's long position.| Focus Media vs. China State Construction | Focus Media vs. Huafa Industrial Co | Focus Media vs. China International Capital | Focus Media vs. Kweichow Moutai Co |
| Sportsoul vs. Agricultural Bank of | Sportsoul vs. Industrial and Commercial | Sportsoul vs. Bank of China | Sportsoul vs. China Construction Bank |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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