Correlation Between Hangzhou Gisway and Focus Media
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By analyzing existing cross correlation between Hangzhou Gisway Information and Focus Media Information, you can compare the effects of market volatilities on Hangzhou Gisway 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 Hangzhou Gisway with a short position of Focus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gisway and Focus Media.
Diversification Opportunities for Hangzhou Gisway and Focus Media
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hangzhou and Focus is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gisway Information 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 Hangzhou Gisway 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 Hangzhou Gisway Information 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 Hangzhou Gisway i.e., Hangzhou Gisway and Focus Media go up and down completely randomly.
Pair Corralation between Hangzhou Gisway and Focus Media
Assuming the 90 days trading horizon Hangzhou Gisway Information is not expected to generate positive returns. Moreover, Hangzhou Gisway is 1.78 times more volatile than Focus Media Information. It trades away all of its potential returns to assume current level of volatility. Focus Media Information is currently generating about 0.03 per unit of risk. If you would invest 578.00 in Focus Media Information on September 3, 2024 and sell it today you would earn a total of 112.00 from holding Focus Media Information or generate 19.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 80.29% |
| Values | Daily Returns |
Hangzhou Gisway Information vs. Focus Media Information
Performance |
| Timeline |
| Hangzhou Gisway Info |
| Focus Media Information |
Hangzhou Gisway and Focus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Gisway and Focus Media
The main advantage of trading using opposite Hangzhou Gisway and Focus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gisway 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.| Hangzhou Gisway vs. Fujian Longzhou Transportation | Hangzhou Gisway vs. Hainan Haiqi Transportation | Hangzhou Gisway vs. Broadex Technologies Co | Hangzhou Gisway vs. Heilongjiang Transport Development |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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