Correlation Between Focus Media and Zhuhai Comleader
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By analyzing existing cross correlation between Focus Media Information and Zhuhai Comleader Information, you can compare the effects of market volatilities on Focus Media and Zhuhai Comleader 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 Zhuhai Comleader. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Media and Zhuhai Comleader.
Diversification Opportunities for Focus Media and Zhuhai Comleader
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Focus and Zhuhai is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Focus Media Information and Zhuhai Comleader Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuhai Comleader Inf 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 Zhuhai Comleader. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuhai Comleader Inf has no effect on the direction of Focus Media i.e., Focus Media and Zhuhai Comleader go up and down completely randomly.
Pair Corralation between Focus Media and Zhuhai Comleader
Assuming the 90 days trading horizon Focus Media Information is expected to under-perform the Zhuhai Comleader. But the stock apears to be less risky and, when comparing its historical volatility, Focus Media Information is 2.82 times less risky than Zhuhai Comleader. The stock trades about -0.26 of its potential returns per unit of risk. The Zhuhai Comleader Information is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,759 in Zhuhai Comleader Information on August 29, 2024 and sell it today you would lose (12.00) from holding Zhuhai Comleader Information or give up 0.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Focus Media Information vs. Zhuhai Comleader Information
Performance |
| Timeline |
| Focus Media Information |
| Zhuhai Comleader Inf |
Focus Media and Zhuhai Comleader Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Media and Zhuhai Comleader
The main advantage of trading using opposite Focus Media and Zhuhai Comleader positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Media position performs unexpectedly, Zhuhai Comleader 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 Zhuhai Comleader will offset losses from the drop in Zhuhai Comleader's long position.| Focus Media vs. China State Construction | Focus Media vs. Huafa Industrial Co | Focus Media vs. China International Capital | Focus Media vs. Kweichow Moutai Co |
| Zhuhai Comleader vs. Sanbo Hospital Management | Zhuhai Comleader vs. Zhengzhou Qianweiyangchu Food | Zhuhai Comleader vs. Jiangsu Yike Food | Zhuhai Comleader vs. Huaxia Fund Management |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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