Correlation Between Guangzhou Tinci and Focus Media
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By analyzing existing cross correlation between Guangzhou Tinci Materials and Focus Media Information, you can compare the effects of market volatilities on Guangzhou Tinci 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 Guangzhou Tinci with a short position of Focus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Focus Media.
Diversification Opportunities for Guangzhou Tinci and Focus Media
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Focus is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials 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 Guangzhou Tinci 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 Guangzhou Tinci Materials 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 Guangzhou Tinci i.e., Guangzhou Tinci and Focus Media go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Focus Media
Assuming the 90 days trading horizon Guangzhou Tinci Materials is expected to generate 2.58 times more return on investment than Focus Media. However, Guangzhou Tinci is 2.58 times more volatile than Focus Media Information. It trades about 0.01 of its potential returns per unit of risk. Focus Media Information is currently generating about -0.16 per unit of risk. If you would invest 2,231 in Guangzhou Tinci Materials on September 15, 2024 and sell it today you would lose (18.00) from holding Guangzhou Tinci Materials or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Tinci Materials vs. Focus Media Information
Performance |
| Timeline |
| Guangzhou Tinci Materials |
| Focus Media Information |
Guangzhou Tinci and Focus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Focus Media
The main advantage of trading using opposite Guangzhou Tinci and Focus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci 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.| Guangzhou Tinci vs. Zijin Mining Group | Guangzhou Tinci vs. Wanhua Chemical Group | Guangzhou Tinci vs. Baoshan Iron Steel | Guangzhou Tinci vs. Shandong Gold Mining |
| Focus Media vs. Xinke Material | Focus Media vs. Guangzhou Tinci Materials | Focus Media vs. Shanghai Ziyan Foods | Focus Media vs. Shantou Wanshun Package |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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