Correlation Between Sungrow Power and Focus Media
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By analyzing existing cross correlation between Sungrow Power Supply and Focus Media Information, you can compare the effects of market volatilities on Sungrow Power 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 Sungrow Power with a short position of Focus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungrow Power and Focus Media.
Diversification Opportunities for Sungrow Power and Focus Media
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sungrow and Focus is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Sungrow Power Supply 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 Sungrow Power 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 Sungrow Power Supply 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 Sungrow Power i.e., Sungrow Power and Focus Media go up and down completely randomly.
Pair Corralation between Sungrow Power and Focus Media
Assuming the 90 days trading horizon Sungrow Power Supply is expected to under-perform the Focus Media. In addition to that, Sungrow Power is 1.7 times more volatile than Focus Media Information. It trades about -0.15 of its total potential returns per unit of risk. Focus Media Information is currently generating about -0.15 per unit of volatility. If you would invest 726.00 in Focus Media Information on September 3, 2024 and sell it today you would lose (36.00) from holding Focus Media Information or give up 4.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sungrow Power Supply vs. Focus Media Information
Performance |
| Timeline |
| Sungrow Power Supply |
| Focus Media Information |
Sungrow Power and Focus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sungrow Power and Focus Media
The main advantage of trading using opposite Sungrow Power and Focus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungrow Power 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.| Sungrow Power vs. Cultural Investment Holdings | Sungrow Power vs. Kunwu Jiuding Investment | Sungrow Power vs. Sunwave Communications Co | Sungrow Power vs. Luyin Investment Group |
| Focus Media vs. Agricultural Bank of | Focus Media vs. China Construction Bank | Focus Media vs. Postal Savings Bank | Focus Media vs. Bank of Communications |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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