Correlation Between Focus Media and Peoples Insurance
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By analyzing existing cross correlation between Focus Media Information and Peoples Insurance of, you can compare the effects of market volatilities on Focus Media and Peoples Insurance 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 Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Media and Peoples Insurance.
Diversification Opportunities for Focus Media and Peoples Insurance
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Focus and Peoples is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Focus Media Information and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance 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 Peoples Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peoples Insurance has no effect on the direction of Focus Media i.e., Focus Media and Peoples Insurance go up and down completely randomly.
Pair Corralation between Focus Media and Peoples Insurance
Assuming the 90 days trading horizon Focus Media Information is expected to under-perform the Peoples Insurance. But the stock apears to be less risky and, when comparing its historical volatility, Focus Media Information is 1.54 times less risky than Peoples Insurance. The stock trades about -0.21 of its potential returns per unit of risk. The Peoples Insurance of is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 723.00 in Peoples Insurance of on August 30, 2024 and sell it today you would earn a total of 2.00 from holding Peoples Insurance of or generate 0.28% 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. Peoples Insurance of
Performance |
| Timeline |
| Focus Media Information |
| Peoples Insurance |
Focus Media and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Media and Peoples Insurance
The main advantage of trading using opposite Focus Media and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Media position performs unexpectedly, Peoples Insurance 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 Peoples Insurance will offset losses from the drop in Peoples Insurance's long position.| Focus Media vs. CareRay Digital Medical | Focus Media vs. Nanjing Medlander Medical | Focus Media vs. Cofoe Medical Technology | Focus Media vs. Allmed Medical Products |
| Peoples Insurance vs. Ming Yang Smart | Peoples Insurance vs. 159005 | Peoples Insurance vs. Loctek Ergonomic Technology | Peoples Insurance vs. 516220 |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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