Correlation Between Focus Media and CITIC Securities
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By analyzing existing cross correlation between Focus Media Information and CITIC Securities Co, you can compare the effects of market volatilities on Focus Media and CITIC Securities 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 CITIC Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Media and CITIC Securities.
Diversification Opportunities for Focus Media and CITIC Securities
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Focus and CITIC is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Focus Media Information and CITIC Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Securities 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 CITIC Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Securities has no effect on the direction of Focus Media i.e., Focus Media and CITIC Securities go up and down completely randomly.
Pair Corralation between Focus Media and CITIC Securities
Assuming the 90 days trading horizon Focus Media is expected to generate 1.86 times less return on investment than CITIC Securities. But when comparing it to its historical volatility, Focus Media Information is 1.09 times less risky than CITIC Securities. It trades about 0.05 of its potential returns per unit of risk. CITIC Securities Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,103 in CITIC Securities Co on September 2, 2024 and sell it today you would earn a total of 972.00 from holding CITIC Securities Co or generate 46.22% 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. CITIC Securities Co
Performance |
| Timeline |
| Focus Media Information |
| CITIC Securities |
Focus Media and CITIC Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Media and CITIC Securities
The main advantage of trading using opposite Focus Media and CITIC Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Media position performs unexpectedly, CITIC Securities 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 CITIC Securities will offset losses from the drop in CITIC Securities' long position.| Focus Media vs. Semiconductor Manufacturing Intl | Focus Media vs. Anhui Conch Cement | Focus Media vs. Sungrow Power Supply | Focus Media vs. Shenzhen New Nanshan |
| CITIC Securities vs. BeiGene | CITIC Securities vs. Kweichow Moutai Co | CITIC Securities vs. Beijing Roborock Technology | CITIC Securities vs. G bits Network Technology |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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