Correlation Between Focus Media and JCHX Mining
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By analyzing existing cross correlation between Focus Media Information and JCHX Mining Management, you can compare the effects of market volatilities on Focus Media and JCHX Mining 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 JCHX Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Media and JCHX Mining.
Diversification Opportunities for Focus Media and JCHX Mining
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Focus and JCHX is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Focus Media Information and JCHX Mining Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCHX Mining Management 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 JCHX Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCHX Mining Management has no effect on the direction of Focus Media i.e., Focus Media and JCHX Mining go up and down completely randomly.
Pair Corralation between Focus Media and JCHX Mining
Assuming the 90 days trading horizon Focus Media Information is expected to generate 0.64 times more return on investment than JCHX Mining. However, Focus Media Information is 1.57 times less risky than JCHX Mining. It trades about -0.14 of its potential returns per unit of risk. JCHX Mining Management is currently generating about -0.11 per unit of risk. If you would invest 724.00 in Focus Media Information on September 2, 2024 and sell it today you would lose (34.00) from holding Focus Media Information or give up 4.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Focus Media Information vs. JCHX Mining Management
Performance |
| Timeline |
| Focus Media Information |
| JCHX Mining Management |
Focus Media and JCHX Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Media and JCHX Mining
The main advantage of trading using opposite Focus Media and JCHX Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Media position performs unexpectedly, JCHX Mining 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 JCHX Mining will offset losses from the drop in JCHX Mining's long position.| Focus Media vs. Semiconductor Manufacturing Intl | Focus Media vs. Anhui Conch Cement | Focus Media vs. Sungrow Power Supply | Focus Media vs. Shenzhen New Nanshan |
| JCHX Mining vs. Zijin Mining Group | JCHX Mining vs. Wanhua Chemical Group | JCHX Mining vs. Baoshan Iron Steel | JCHX Mining vs. Shandong Gold Mining |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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