Correlation Between Xinke Material and Focus Media
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By analyzing existing cross correlation between Xinke Material and Focus Media Information, you can compare the effects of market volatilities on Xinke Material 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 Xinke Material with a short position of Focus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinke Material and Focus Media.
Diversification Opportunities for Xinke Material and Focus Media
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinke and Focus is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Xinke Material 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 Xinke Material 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 Xinke Material 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 Xinke Material i.e., Xinke Material and Focus Media go up and down completely randomly.
Pair Corralation between Xinke Material and Focus Media
Assuming the 90 days trading horizon Xinke Material is expected to generate 2.97 times more return on investment than Focus Media. However, Xinke Material is 2.97 times more volatile than Focus Media Information. It trades about 0.25 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 229.00 in Xinke Material on September 15, 2024 and sell it today you would earn a total of 50.00 from holding Xinke Material or generate 21.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinke Material vs. Focus Media Information
Performance |
| Timeline |
| Xinke Material |
| Focus Media Information |
Xinke Material and Focus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinke Material and Focus Media
The main advantage of trading using opposite Xinke Material and Focus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinke Material 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.| Xinke Material vs. Zijin Mining Group | Xinke Material vs. Wanhua Chemical Group | Xinke Material vs. Baoshan Iron Steel | Xinke Material 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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