Correlation Between Chongqing Sokon and Focus Media
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By analyzing existing cross correlation between Chongqing Sokon Ind and Focus Media Information, you can compare the effects of market volatilities on Chongqing Sokon 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 Chongqing Sokon with a short position of Focus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Sokon and Focus Media.
Diversification Opportunities for Chongqing Sokon and Focus Media
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chongqing and Focus is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Sokon Ind 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 Chongqing Sokon 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 Chongqing Sokon Ind 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 Chongqing Sokon i.e., Chongqing Sokon and Focus Media go up and down completely randomly.
Pair Corralation between Chongqing Sokon and Focus Media
Assuming the 90 days trading horizon Chongqing Sokon Ind is expected to generate 1.53 times more return on investment than Focus Media. However, Chongqing Sokon is 1.53 times more volatile than Focus Media Information. It trades about 0.07 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 13,080 in Chongqing Sokon Ind on October 20, 2024 and sell it today you would earn a total of 427.00 from holding Chongqing Sokon Ind or generate 3.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Sokon Ind vs. Focus Media Information
Performance |
| Timeline |
| Chongqing Sokon Ind |
| Focus Media Information |
Chongqing Sokon and Focus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Sokon and Focus Media
The main advantage of trading using opposite Chongqing Sokon and Focus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Sokon 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.| Chongqing Sokon vs. Agricultural Bank of | Chongqing Sokon vs. Industrial and Commercial | Chongqing Sokon vs. Bank of China | Chongqing Sokon vs. PetroChina Co Ltd |
| Focus Media vs. Hainan Mining Co | Focus Media vs. SSAW Hotels Resorts | Focus Media vs. Xinjiang Baodi Mining | Focus Media vs. Shanghai Yanpu Metal |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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