Correlation Between Focus Media and Guangdong Marubi
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By analyzing existing cross correlation between Focus Media Information and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Focus Media and Guangdong Marubi 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 Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Media and Guangdong Marubi.
Diversification Opportunities for Focus Media and Guangdong Marubi
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Focus and Guangdong is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Focus Media Information and Guangdong Marubi Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Marubi Bio 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 Guangdong Marubi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Marubi Bio has no effect on the direction of Focus Media i.e., Focus Media and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Focus Media and Guangdong Marubi
Assuming the 90 days trading horizon Focus Media Information is expected to generate 0.63 times more return on investment than Guangdong Marubi. However, Focus Media Information is 1.58 times less risky than Guangdong Marubi. It trades about -0.18 of its potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about -0.13 per unit of risk. If you would invest 745.00 in Focus Media Information on August 25, 2024 and sell it today you would lose (45.00) from holding Focus Media Information or give up 6.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Focus Media Information vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Focus Media Information |
| Guangdong Marubi Bio |
Focus Media and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Media and Guangdong Marubi
The main advantage of trading using opposite Focus Media and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Media position performs unexpectedly, Guangdong Marubi 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 Guangdong Marubi will offset losses from the drop in Guangdong Marubi's long position.| Focus Media vs. Agricultural Bank of | Focus Media vs. Industrial and Commercial | Focus Media vs. Bank of China | Focus Media vs. China Construction Bank |
| Guangdong Marubi vs. Guangdong Brandmax Marketing | Guangdong Marubi vs. AVCON Information Tech | Guangdong Marubi vs. Focus Media Information | Guangdong Marubi vs. Gansu Huangtai Wine marketing |
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 Stocks Directory module to find actively traded stocks across global markets.
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