Correlation Between Focus Media and PetroChina
Specify exactly 2 symbols:
By analyzing existing cross correlation between Focus Media Information and PetroChina Co Ltd, you can compare the effects of market volatilities on Focus Media and PetroChina 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 PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Media and PetroChina.
Diversification Opportunities for Focus Media and PetroChina
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Focus and PetroChina is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Focus Media Information and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina 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 PetroChina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PetroChina has no effect on the direction of Focus Media i.e., Focus Media and PetroChina go up and down completely randomly.
Pair Corralation between Focus Media and PetroChina
Assuming the 90 days trading horizon Focus Media Information is expected to generate 2.19 times more return on investment than PetroChina. However, Focus Media is 2.19 times more volatile than PetroChina Co Ltd. It trades about -0.09 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.29 per unit of risk. If you would invest 666.00 in Focus Media Information on December 4, 2024 and sell it today you would lose (19.00) from holding Focus Media Information or give up 2.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Focus Media Information vs. PetroChina Co Ltd
Performance |
| Timeline |
| Focus Media Information |
| PetroChina |
Focus Media and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Media and PetroChina
The main advantage of trading using opposite Focus Media and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Media position performs unexpectedly, PetroChina 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 PetroChina will offset losses from the drop in PetroChina's long position.| Focus Media vs. Zijin Mining Group | Focus Media vs. Ningbo Fangzheng Automobile | Focus Media vs. Xuzhou Handler Special | Focus Media vs. Shanghai Yanpu Metal |
| PetroChina vs. Guangdong Wens Foodstuff | PetroChina vs. Bomin Electronics Co | PetroChina vs. Aurora Optoelectronics Co | PetroChina vs. Xiwang Foodstuffs Co |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |