Correlation Between Focus Media and Guangzhou Shiyuan
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By analyzing existing cross correlation between Focus Media Information and Guangzhou Shiyuan Electronic, you can compare the effects of market volatilities on Focus Media and Guangzhou Shiyuan 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 Guangzhou Shiyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Media and Guangzhou Shiyuan.
Diversification Opportunities for Focus Media and Guangzhou Shiyuan
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Focus and Guangzhou is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Focus Media Information and Guangzhou Shiyuan Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Shiyuan 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 Guangzhou Shiyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Shiyuan has no effect on the direction of Focus Media i.e., Focus Media and Guangzhou Shiyuan go up and down completely randomly.
Pair Corralation between Focus Media and Guangzhou Shiyuan
Assuming the 90 days trading horizon Focus Media Information is expected to under-perform the Guangzhou Shiyuan. But the stock apears to be less risky and, when comparing its historical volatility, Focus Media Information is 2.22 times less risky than Guangzhou Shiyuan. The stock trades about -0.17 of its potential returns per unit of risk. The Guangzhou Shiyuan Electronic is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,792 in Guangzhou Shiyuan Electronic on September 12, 2024 and sell it today you would earn a total of 134.00 from holding Guangzhou Shiyuan Electronic or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Focus Media Information vs. Guangzhou Shiyuan Electronic
Performance |
| Timeline |
| Focus Media Information |
| Guangzhou Shiyuan |
Focus Media and Guangzhou Shiyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Media and Guangzhou Shiyuan
The main advantage of trading using opposite Focus Media and Guangzhou Shiyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Media position performs unexpectedly, Guangzhou Shiyuan 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 Guangzhou Shiyuan will offset losses from the drop in Guangzhou Shiyuan's long position.| Focus Media vs. Gansu Jiu Steel | Focus Media vs. Shandong Mining Machinery | Focus Media vs. Aba Chemicals Corp | Focus Media vs. BlueFocus Communication Group |
| Guangzhou Shiyuan vs. Niutech Environment Technology | Guangzhou Shiyuan vs. Qingdao Hi Tech Moulds | Guangzhou Shiyuan vs. Kuang Chi Technologies | Guangzhou Shiyuan vs. HanS Laser Tech |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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