Correlation Between Focus Media and Gotion High
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By analyzing existing cross correlation between Focus Media Information and Gotion High tech, you can compare the effects of market volatilities on Focus Media and Gotion High 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 Gotion High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Media and Gotion High.
Diversification Opportunities for Focus Media and Gotion High
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Focus and Gotion is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Focus Media Information and Gotion High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gotion High tech 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 Gotion High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gotion High tech has no effect on the direction of Focus Media i.e., Focus Media and Gotion High go up and down completely randomly.
Pair Corralation between Focus Media and Gotion High
Assuming the 90 days trading horizon Focus Media Information is expected to generate 0.74 times more return on investment than Gotion High. However, Focus Media Information is 1.35 times less risky than Gotion High. It trades about 0.05 of its potential returns per unit of risk. Gotion High tech is currently generating about 0.03 per unit of risk. If you would invest 565.00 in Focus Media Information on August 31, 2024 and sell it today you would earn a total of 117.00 from holding Focus Media Information or generate 20.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.58% |
| Values | Daily Returns |
Focus Media Information vs. Gotion High tech
Performance |
| Timeline |
| Focus Media Information |
| Gotion High tech |
Focus Media and Gotion High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Media and Gotion High
The main advantage of trading using opposite Focus Media and Gotion High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Media position performs unexpectedly, Gotion High 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 Gotion High will offset losses from the drop in Gotion High's long position.| Focus Media vs. Vohringer Home Technology | Focus Media vs. FSPG Hi Tech Co | Focus Media vs. Suofeiya Home Collection | Focus Media vs. State Grid InformationCommunication |
| Gotion High vs. Jinhe Biotechnology Co | Gotion High vs. Shuhua Sports Co | Gotion High vs. Focus Media Information | Gotion High vs. Guangdong Marubi Biotechnology |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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