Correlation Between Focus Media and AVCON Information
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By analyzing existing cross correlation between Focus Media Information and AVCON Information Tech, you can compare the effects of market volatilities on Focus Media and AVCON Information 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 AVCON Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Media and AVCON Information.
Diversification Opportunities for Focus Media and AVCON Information
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Focus and AVCON is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Focus Media Information and AVCON Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVCON Information 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 AVCON Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVCON Information Tech has no effect on the direction of Focus Media i.e., Focus Media and AVCON Information go up and down completely randomly.
Pair Corralation between Focus Media and AVCON Information
Assuming the 90 days trading horizon Focus Media is expected to generate 1.5 times less return on investment than AVCON Information. But when comparing it to its historical volatility, Focus Media Information is 1.72 times less risky than AVCON Information. It trades about 0.03 of its potential returns per unit of risk. AVCON Information Tech is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 409.00 in AVCON Information Tech on August 28, 2024 and sell it today you would earn a total of 74.00 from holding AVCON Information Tech or generate 18.09% 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. AVCON Information Tech
Performance |
| Timeline |
| Focus Media Information |
| AVCON Information Tech |
Focus Media and AVCON Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Media and AVCON Information
The main advantage of trading using opposite Focus Media and AVCON Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Media position performs unexpectedly, AVCON Information 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 AVCON Information will offset losses from the drop in AVCON Information'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 |
| AVCON Information vs. Shenzhen MYS Environmental | AVCON Information vs. AVIC Fund Management | AVCON Information vs. Shenzhen Bingchuan Network | AVCON Information vs. Penghua Shenzhen Energy |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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