Correlation Between Focus Media and Changjiang Publishing
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By analyzing existing cross correlation between Focus Media Information and Changjiang Publishing Media, you can compare the effects of market volatilities on Focus Media and Changjiang Publishing 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 Changjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Media and Changjiang Publishing.
Diversification Opportunities for Focus Media and Changjiang Publishing
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Focus and Changjiang is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Focus Media Information and Changjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Publishing 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 Changjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Publishing has no effect on the direction of Focus Media i.e., Focus Media and Changjiang Publishing go up and down completely randomly.
Pair Corralation between Focus Media and Changjiang Publishing
Assuming the 90 days trading horizon Focus Media Information is expected to generate 0.9 times more return on investment than Changjiang Publishing. However, Focus Media Information is 1.12 times less risky than Changjiang Publishing. It trades about 0.05 of its potential returns per unit of risk. Changjiang Publishing Media is currently generating about 0.03 per unit of risk. If you would invest 571.00 in Focus Media Information on September 12, 2024 and sell it today you would earn a total of 128.00 from holding Focus Media Information or generate 22.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Focus Media Information vs. Changjiang Publishing Media
Performance |
| Timeline |
| Focus Media Information |
| Changjiang Publishing |
Focus Media and Changjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Media and Changjiang Publishing
The main advantage of trading using opposite Focus Media and Changjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Media position performs unexpectedly, Changjiang Publishing 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 Changjiang Publishing will offset losses from the drop in Changjiang Publishing'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 |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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