Correlation Between Jiangsu Broadcasting and Focus Media
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Broadcasting Cable and Focus Media Information, you can compare the effects of market volatilities on Jiangsu Broadcasting 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 Jiangsu Broadcasting with a short position of Focus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Broadcasting and Focus Media.
Diversification Opportunities for Jiangsu Broadcasting and Focus Media
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jiangsu and Focus is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Broadcasting Cable 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 Jiangsu Broadcasting 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 Jiangsu Broadcasting Cable 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 Jiangsu Broadcasting i.e., Jiangsu Broadcasting and Focus Media go up and down completely randomly.
Pair Corralation between Jiangsu Broadcasting and Focus Media
Assuming the 90 days trading horizon Jiangsu Broadcasting is expected to generate 1.11 times less return on investment than Focus Media. But when comparing it to its historical volatility, Jiangsu Broadcasting Cable is 1.05 times less risky than Focus Media. It trades about 0.01 of its potential returns per unit of risk. Focus Media Information is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 619.00 in Focus Media Information on October 16, 2024 and sell it today you would earn a total of 26.00 from holding Focus Media Information or generate 4.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Broadcasting Cable vs. Focus Media Information
Performance |
| Timeline |
| Jiangsu Broadcasting |
| Focus Media Information |
Jiangsu Broadcasting and Focus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Broadcasting and Focus Media
The main advantage of trading using opposite Jiangsu Broadcasting and Focus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Broadcasting 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.| Jiangsu Broadcasting vs. Ye Chiu Metal | Jiangsu Broadcasting vs. Ningbo Jintian Copper | Jiangsu Broadcasting vs. Sino Platinum Metals Co | Jiangsu Broadcasting vs. Zhejiang JIULI Hi tech |
| Focus Media vs. Heilongjiang Transport Development | Focus Media vs. Zhejiang Kingland Pipeline | Focus Media vs. Xinjiang Baodi Mining | Focus Media vs. Jiangsu Broadcasting Cable |
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.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Transaction History View history of all your transactions and understand their impact on performance |