Correlation Between Westone Information and Focus Media
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By analyzing existing cross correlation between Westone Information Industry and Focus Media Information, you can compare the effects of market volatilities on Westone Information and Focus Media 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 Westone Information with a short position of Focus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westone Information and Focus Media.
Diversification Opportunities for Westone Information and Focus Media
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Westone and Focus is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Westone Information Industry and Focus Media Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Focus Media Information and Westone Information 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 Westone Information Industry are associated (or correlated) with Focus Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Focus Media Information has no effect on the direction of Westone Information i.e., Westone Information and Focus Media go up and down completely randomly.
Pair Corralation between Westone Information and Focus Media
Assuming the 90 days trading horizon Westone Information Industry is expected to under-perform the Focus Media. In addition to that, Westone Information is 1.57 times more volatile than Focus Media Information. It trades about -0.2 of its total potential returns per unit of risk. Focus Media Information is currently generating about -0.14 per unit of volatility. If you would invest 740.00 in Focus Media Information on September 12, 2024 and sell it today you would lose (35.00) from holding Focus Media Information or give up 4.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westone Information Industry vs. Focus Media Information
Performance |
| Timeline |
| Westone Information |
| Focus Media Information |
Westone Information and Focus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westone Information and Focus Media
The main advantage of trading using opposite Westone Information and Focus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westone Information position performs unexpectedly, Focus Media 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 Focus Media will offset losses from the drop in Focus Media's long position.| Westone Information vs. Gansu Jiu Steel | Westone Information vs. Shandong Mining Machinery | Westone Information vs. Aba Chemicals Corp | Westone Information vs. BlueFocus Communication Group |
| Focus Media vs. Gansu Jiu Steel | Focus Media vs. Shandong Mining Machinery | Focus Media vs. Aba Chemicals Corp | Focus Media vs. BlueFocus Communication Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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