Correlation Between SSAW Hotels and Focus Media
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By analyzing existing cross correlation between SSAW Hotels Resorts and Focus Media Information, you can compare the effects of market volatilities on SSAW Hotels 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 SSAW Hotels with a short position of Focus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSAW Hotels and Focus Media.
Diversification Opportunities for SSAW Hotels and Focus Media
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SSAW and Focus is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding SSAW Hotels Resorts 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 SSAW Hotels 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 SSAW Hotels Resorts 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 SSAW Hotels i.e., SSAW Hotels and Focus Media go up and down completely randomly.
Pair Corralation between SSAW Hotels and Focus Media
Assuming the 90 days trading horizon SSAW Hotels Resorts is expected to under-perform the Focus Media. In addition to that, SSAW Hotels is 2.3 times more volatile than Focus Media Information. It trades about -0.11 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 688.00 in Focus Media Information on November 2, 2024 and sell it today you would lose (26.00) from holding Focus Media Information or give up 3.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSAW Hotels Resorts vs. Focus Media Information
Performance |
| Timeline |
| SSAW Hotels Resorts |
| Focus Media Information |
SSAW Hotels and Focus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSAW Hotels and Focus Media
The main advantage of trading using opposite SSAW Hotels and Focus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSAW Hotels 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.| SSAW Hotels vs. ZYF Lopsking Aluminum | SSAW Hotels vs. Aurora Optoelectronics Co | SSAW Hotels vs. Ningbo Kangqiang Electronics | SSAW Hotels vs. Shanghai Yanpu Metal |
| Focus Media vs. Zhengzhou Coal Mining | Focus Media vs. Ningbo Jintian Copper | Focus Media vs. Yindu Kitchen Equipment | Focus Media vs. North Copper Shanxi |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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