Correlation Between Focus Media and Mengtian Home
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By analyzing existing cross correlation between Focus Media Information and Mengtian Home Group, you can compare the effects of market volatilities on Focus Media and Mengtian Home 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 Mengtian Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Media and Mengtian Home.
Diversification Opportunities for Focus Media and Mengtian Home
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Focus and Mengtian is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Focus Media Information and Mengtian Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mengtian Home Group 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 Mengtian Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mengtian Home Group has no effect on the direction of Focus Media i.e., Focus Media and Mengtian Home go up and down completely randomly.
Pair Corralation between Focus Media and Mengtian Home
Assuming the 90 days trading horizon Focus Media Information is expected to generate 1.06 times more return on investment than Mengtian Home. However, Focus Media is 1.06 times more volatile than Mengtian Home Group. It trades about 0.05 of its potential returns per unit of risk. Mengtian Home Group is currently generating about 0.04 per unit of risk. If you would invest 617.00 in Focus Media Information on September 3, 2024 and sell it today you would earn a total of 73.00 from holding Focus Media Information or generate 11.83% 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. Mengtian Home Group
Performance |
| Timeline |
| Focus Media Information |
| Mengtian Home Group |
Focus Media and Mengtian Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Media and Mengtian Home
The main advantage of trading using opposite Focus Media and Mengtian Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Media position performs unexpectedly, Mengtian Home 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 Mengtian Home will offset losses from the drop in Mengtian Home's long position.| Focus Media vs. Agricultural Bank of | Focus Media vs. China Construction Bank | Focus Media vs. Postal Savings Bank | Focus Media vs. Bank of Communications |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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