Correlation Between YiDong Electronics and Focus Media
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By analyzing existing cross correlation between YiDong Electronics Technology and Focus Media Information, you can compare the effects of market volatilities on YiDong Electronics 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 YiDong Electronics with a short position of Focus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of YiDong Electronics and Focus Media.
Diversification Opportunities for YiDong Electronics and Focus Media
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between YiDong and Focus is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding YiDong Electronics Technology 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 YiDong Electronics 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 YiDong Electronics Technology 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 YiDong Electronics i.e., YiDong Electronics and Focus Media go up and down completely randomly.
Pair Corralation between YiDong Electronics and Focus Media
Assuming the 90 days trading horizon YiDong Electronics is expected to generate 3.93 times less return on investment than Focus Media. In addition to that, YiDong Electronics is 2.11 times more volatile than Focus Media Information. It trades about 0.0 of its total potential returns per unit of risk. Focus Media Information is currently generating about 0.03 per unit of volatility. If you would invest 625.00 in Focus Media Information on September 15, 2024 and sell it today you would earn a total of 70.00 from holding Focus Media Information or generate 11.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
YiDong Electronics Technology vs. Focus Media Information
Performance |
| Timeline |
| YiDong Electronics |
| Focus Media Information |
YiDong Electronics and Focus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YiDong Electronics and Focus Media
The main advantage of trading using opposite YiDong Electronics and Focus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YiDong Electronics 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.| YiDong Electronics vs. Xinxiang Chemical Fiber | YiDong Electronics vs. Quectel Wireless Solutions | YiDong Electronics vs. China National Software | YiDong Electronics vs. Maoming Petro Chemical Shihua |
| 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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