Correlation Between Xinjiang Baodi and Focus Media
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Focus Media Information, you can compare the effects of market volatilities on Xinjiang Baodi 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 Xinjiang Baodi with a short position of Focus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Focus Media.
Diversification Opportunities for Xinjiang Baodi and Focus Media
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xinjiang and Focus is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining 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 Xinjiang Baodi 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 Xinjiang Baodi Mining 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 Xinjiang Baodi i.e., Xinjiang Baodi and Focus Media go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Focus Media
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate 1.45 times more return on investment than Focus Media. However, Xinjiang Baodi is 1.45 times more volatile than Focus Media Information. It trades about 0.02 of its potential returns per unit of risk. Focus Media Information is currently generating about 0.01 per unit of risk. If you would invest 604.00 in Xinjiang Baodi Mining on October 16, 2024 and sell it today you would earn a total of 17.00 from holding Xinjiang Baodi Mining or generate 2.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.93% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Focus Media Information
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Focus Media Information |
Xinjiang Baodi and Focus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Focus Media
The main advantage of trading using opposite Xinjiang Baodi and Focus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi 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.| Xinjiang Baodi vs. Chongqing Shunbo Aluminum | Xinjiang Baodi vs. Yindu Kitchen Equipment | Xinjiang Baodi vs. China Aluminum International | Xinjiang Baodi vs. Rising Nonferrous Metals |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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