Correlation Between Focus Media and 37 Interactive
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By analyzing existing cross correlation between Focus Media Information and 37 Interactive Entertainment, you can compare the effects of market volatilities on Focus Media and 37 Interactive 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 37 Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Media and 37 Interactive.
Diversification Opportunities for Focus Media and 37 Interactive
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Focus and 002555 is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Focus Media Information and 37 Interactive Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 37 Interactive Enter 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 37 Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 37 Interactive Enter has no effect on the direction of Focus Media i.e., Focus Media and 37 Interactive go up and down completely randomly.
Pair Corralation between Focus Media and 37 Interactive
Assuming the 90 days trading horizon Focus Media Information is expected to under-perform the 37 Interactive. But the stock apears to be less risky and, when comparing its historical volatility, Focus Media Information is 2.13 times less risky than 37 Interactive. The stock trades about -0.21 of its potential returns per unit of risk. The 37 Interactive Entertainment is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,654 in 37 Interactive Entertainment on August 30, 2024 and sell it today you would earn a total of 14.00 from holding 37 Interactive Entertainment or generate 0.85% 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. 37 Interactive Entertainment
Performance |
| Timeline |
| Focus Media Information |
| 37 Interactive Enter |
Focus Media and 37 Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Media and 37 Interactive
The main advantage of trading using opposite Focus Media and 37 Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Media position performs unexpectedly, 37 Interactive 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 37 Interactive will offset losses from the drop in 37 Interactive's long position.| Focus Media vs. CareRay Digital Medical | Focus Media vs. Nanjing Medlander Medical | Focus Media vs. Cofoe Medical Technology | Focus Media vs. Allmed Medical Products |
| 37 Interactive vs. Kweichow Moutai Co | 37 Interactive vs. Contemporary Amperex Technology | 37 Interactive vs. G bits Network Technology | 37 Interactive vs. BYD Co Ltd |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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