Correlation Between 37 Interactive and Focus Media
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By analyzing existing cross correlation between 37 Interactive Entertainment and Focus Media Information, you can compare the effects of market volatilities on 37 Interactive 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 37 Interactive with a short position of Focus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of 37 Interactive and Focus Media.
Diversification Opportunities for 37 Interactive and Focus Media
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 002555 and Focus is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding 37 Interactive Entertainment 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 37 Interactive 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 37 Interactive Entertainment 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 37 Interactive i.e., 37 Interactive and Focus Media go up and down completely randomly.
Pair Corralation between 37 Interactive and Focus Media
Assuming the 90 days trading horizon 37 Interactive Entertainment is expected to generate 1.29 times more return on investment than Focus Media. However, 37 Interactive is 1.29 times more volatile than Focus Media Information. It trades about 0.12 of its potential returns per unit of risk. Focus Media Information is currently generating about 0.14 per unit of risk. If you would invest 1,357 in 37 Interactive Entertainment on August 30, 2024 and sell it today you would earn a total of 311.00 from holding 37 Interactive Entertainment or generate 22.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
37 Interactive Entertainment vs. Focus Media Information
Performance |
| Timeline |
| 37 Interactive Enter |
| Focus Media Information |
37 Interactive and Focus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 37 Interactive and Focus Media
The main advantage of trading using opposite 37 Interactive and Focus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 37 Interactive 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.| 37 Interactive vs. Railway Signal Communication | 37 Interactive vs. Tongyu Communication | 37 Interactive vs. Sunwave Communications Co | 37 Interactive vs. Nanjing Putian Telecommunications |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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