Correlation Between Bright Real and Focus Media
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By analyzing existing cross correlation between Bright Real Estate and Focus Media Information, you can compare the effects of market volatilities on Bright Real 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 Bright Real with a short position of Focus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bright Real and Focus Media.
Diversification Opportunities for Bright Real and Focus Media
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bright and Focus is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Bright Real Estate 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 Bright Real 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 Bright Real Estate 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 Bright Real i.e., Bright Real and Focus Media go up and down completely randomly.
Pair Corralation between Bright Real and Focus Media
Assuming the 90 days trading horizon Bright Real Estate is expected to generate 3.55 times more return on investment than Focus Media. However, Bright Real is 3.55 times more volatile than Focus Media Information. It trades about 0.33 of its potential returns per unit of risk. Focus Media Information is currently generating about -0.1 per unit of risk. If you would invest 318.00 in Bright Real Estate on September 13, 2024 and sell it today you would earn a total of 131.00 from holding Bright Real Estate or generate 41.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bright Real Estate vs. Focus Media Information
Performance |
| Timeline |
| Bright Real Estate |
| Focus Media Information |
Bright Real and Focus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bright Real and Focus Media
The main advantage of trading using opposite Bright Real and Focus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bright Real 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.| Bright Real vs. Focus Media Information | Bright Real vs. Heilongjiang Publishing Media | Bright Real vs. Guangzhou Jinyi Media | Bright Real vs. Beijing Bashi Media |
| Focus Media vs. Industrial and Commercial | Focus Media vs. China Construction Bank | Focus Media vs. Bank of China | Focus Media vs. Agricultural Bank of |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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