Correlation Between Tongding Interconnection and Focus Media
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By analyzing existing cross correlation between Tongding Interconnection Information and Focus Media Information, you can compare the effects of market volatilities on Tongding Interconnection 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 Tongding Interconnection with a short position of Focus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongding Interconnection and Focus Media.
Diversification Opportunities for Tongding Interconnection and Focus Media
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tongding and Focus is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Tongding Interconnection Infor 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 Tongding Interconnection 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 Tongding Interconnection Information 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 Tongding Interconnection i.e., Tongding Interconnection and Focus Media go up and down completely randomly.
Pair Corralation between Tongding Interconnection and Focus Media
Assuming the 90 days trading horizon Tongding Interconnection Information is expected to generate 1.39 times more return on investment than Focus Media. However, Tongding Interconnection is 1.39 times more volatile than Focus Media Information. It trades about 0.15 of its potential returns per unit of risk. Focus Media Information is currently generating about -0.03 per unit of risk. If you would invest 393.00 in Tongding Interconnection Information on August 31, 2024 and sell it today you would earn a total of 65.00 from holding Tongding Interconnection Information or generate 16.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongding Interconnection Infor vs. Focus Media Information
Performance |
| Timeline |
| Tongding Interconnection |
| Focus Media Information |
Tongding Interconnection and Focus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongding Interconnection and Focus Media
The main advantage of trading using opposite Tongding Interconnection and Focus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongding Interconnection 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.| Tongding Interconnection vs. Kweichow Moutai Co | Tongding Interconnection vs. NAURA Technology Group | Tongding Interconnection vs. APT Medical | Tongding Interconnection vs. Contemporary Amperex Technology |
| Focus Media vs. Vohringer Home Technology | Focus Media vs. FSPG Hi Tech Co | Focus Media vs. Suofeiya Home Collection | Focus Media vs. State Grid InformationCommunication |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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