Correlation Between Focus Media and Jiangxi Hengda
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By analyzing existing cross correlation between Focus Media Information and Jiangxi Hengda Hi Tech, you can compare the effects of market volatilities on Focus Media and Jiangxi Hengda 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 Jiangxi Hengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Media and Jiangxi Hengda.
Diversification Opportunities for Focus Media and Jiangxi Hengda
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Focus and Jiangxi is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Focus Media Information and Jiangxi Hengda Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Hengda Hi 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 Jiangxi Hengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Hengda Hi has no effect on the direction of Focus Media i.e., Focus Media and Jiangxi Hengda go up and down completely randomly.
Pair Corralation between Focus Media and Jiangxi Hengda
Assuming the 90 days trading horizon Focus Media is expected to generate 1.54 times less return on investment than Jiangxi Hengda. But when comparing it to its historical volatility, Focus Media Information is 1.29 times less risky than Jiangxi Hengda. It trades about 0.06 of its potential returns per unit of risk. Jiangxi Hengda Hi Tech is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 439.00 in Jiangxi Hengda Hi Tech on August 25, 2024 and sell it today you would earn a total of 96.00 from holding Jiangxi Hengda Hi Tech or generate 21.87% 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. Jiangxi Hengda Hi Tech
Performance |
| Timeline |
| Focus Media Information |
| Jiangxi Hengda Hi |
Focus Media and Jiangxi Hengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Media and Jiangxi Hengda
The main advantage of trading using opposite Focus Media and Jiangxi Hengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Media position performs unexpectedly, Jiangxi Hengda 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 Jiangxi Hengda will offset losses from the drop in Jiangxi Hengda's long position.| Focus Media vs. Agricultural Bank of | Focus Media vs. Industrial and Commercial | Focus Media vs. Bank of China | Focus Media vs. China Construction Bank |
| Jiangxi Hengda vs. Zijin Mining Group | Jiangxi Hengda vs. Wanhua Chemical Group | Jiangxi Hengda vs. Baoshan Iron Steel | Jiangxi Hengda vs. Shandong Gold Mining |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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