Correlation Between Focus Media and Juneyao Airlines
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By analyzing existing cross correlation between Focus Media Information and Juneyao Airlines, you can compare the effects of market volatilities on Focus Media and Juneyao Airlines 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 Juneyao Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Media and Juneyao Airlines.
Diversification Opportunities for Focus Media and Juneyao Airlines
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Focus and Juneyao is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Focus Media Information and Juneyao Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juneyao Airlines 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 Juneyao Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juneyao Airlines has no effect on the direction of Focus Media i.e., Focus Media and Juneyao Airlines go up and down completely randomly.
Pair Corralation between Focus Media and Juneyao Airlines
Assuming the 90 days trading horizon Focus Media Information is expected to generate 0.94 times more return on investment than Juneyao Airlines. However, Focus Media Information is 1.06 times less risky than Juneyao Airlines. It trades about 0.03 of its potential returns per unit of risk. Juneyao Airlines is currently generating about 0.0 per unit of risk. If you would invest 578.00 in Focus Media Information on September 12, 2024 and sell it today you would earn a total of 127.00 from holding Focus Media Information or generate 21.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Focus Media Information vs. Juneyao Airlines
Performance |
| Timeline |
| Focus Media Information |
| Juneyao Airlines |
Focus Media and Juneyao Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Media and Juneyao Airlines
The main advantage of trading using opposite Focus Media and Juneyao Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Media position performs unexpectedly, Juneyao Airlines 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 Juneyao Airlines will offset losses from the drop in Juneyao Airlines' 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 |
| Juneyao Airlines vs. Agricultural Bank of | Juneyao Airlines vs. Industrial and Commercial | Juneyao Airlines vs. Bank of China | Juneyao Airlines vs. PetroChina Co Ltd |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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