Correlation Between Anhui Conch and Focus Media
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By analyzing existing cross correlation between Anhui Conch Cement and Focus Media Information, you can compare the effects of market volatilities on Anhui Conch 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 Anhui Conch with a short position of Focus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Conch and Focus Media.
Diversification Opportunities for Anhui Conch and Focus Media
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Focus is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Conch Cement 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 Anhui Conch 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 Anhui Conch Cement 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 Anhui Conch i.e., Anhui Conch and Focus Media go up and down completely randomly.
Pair Corralation between Anhui Conch and Focus Media
Assuming the 90 days trading horizon Anhui Conch Cement is expected to generate 0.97 times more return on investment than Focus Media. However, Anhui Conch Cement is 1.03 times less risky than Focus Media. It trades about -0.1 of its potential returns per unit of risk. Focus Media Information is currently generating about -0.15 per unit of risk. If you would invest 2,658 in Anhui Conch Cement on September 3, 2024 and sell it today you would lose (92.00) from holding Anhui Conch Cement or give up 3.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Conch Cement vs. Focus Media Information
Performance |
| Timeline |
| Anhui Conch Cement |
| Focus Media Information |
Anhui Conch and Focus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Conch and Focus Media
The main advantage of trading using opposite Anhui Conch and Focus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Conch 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.| Anhui Conch vs. Zhejiang Qianjiang Motorcycle | Anhui Conch vs. Jinhui Liquor Co | Anhui Conch vs. Changchun Faway Automobile | Anhui Conch vs. Chongqing Changan Automobile |
| 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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