Correlation Between Focus Media and OBiO Technology
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By analyzing existing cross correlation between Focus Media Information and OBiO Technology Corp, you can compare the effects of market volatilities on Focus Media and OBiO Technology 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 OBiO Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Media and OBiO Technology.
Diversification Opportunities for Focus Media and OBiO Technology
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Focus and OBiO is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Focus Media Information and OBiO Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OBiO Technology Corp 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 OBiO Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OBiO Technology Corp has no effect on the direction of Focus Media i.e., Focus Media and OBiO Technology go up and down completely randomly.
Pair Corralation between Focus Media and OBiO Technology
Assuming the 90 days trading horizon Focus Media Information is expected to generate 0.57 times more return on investment than OBiO Technology. However, Focus Media Information is 1.76 times less risky than OBiO Technology. It trades about 0.03 of its potential returns per unit of risk. OBiO Technology Corp is currently generating about -0.05 per unit of risk. If you would invest 578.00 in Focus Media Information on September 3, 2024 and sell it today you would earn a total of 112.00 from holding Focus Media Information or generate 19.38% 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. OBiO Technology Corp
Performance |
| Timeline |
| Focus Media Information |
| OBiO Technology Corp |
Focus Media and OBiO Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Media and OBiO Technology
The main advantage of trading using opposite Focus Media and OBiO Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Media position performs unexpectedly, OBiO Technology 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 OBiO Technology will offset losses from the drop in OBiO Technology'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 |
| OBiO Technology vs. Gan Yuan Foods | OBiO Technology vs. Jiahe Foods Industry | OBiO Technology vs. JuneYao Dairy Co | OBiO Technology vs. Tongyu Communication |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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