Correlation Between Peoples Insurance and Focus Media
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By analyzing existing cross correlation between Peoples Insurance of and Focus Media Information, you can compare the effects of market volatilities on Peoples Insurance 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 Peoples Insurance with a short position of Focus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Focus Media.
Diversification Opportunities for Peoples Insurance and Focus Media
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Peoples and Focus is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Insurance of 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 Peoples Insurance 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 Peoples Insurance of 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 Peoples Insurance i.e., Peoples Insurance and Focus Media go up and down completely randomly.
Pair Corralation between Peoples Insurance and Focus Media
Assuming the 90 days trading horizon Peoples Insurance is expected to generate 1.05 times less return on investment than Focus Media. In addition to that, Peoples Insurance is 1.1 times more volatile than Focus Media Information. It trades about 0.12 of its total potential returns per unit of risk. Focus Media Information is currently generating about 0.14 per unit of volatility. If you would invest 563.00 in Focus Media Information on August 30, 2024 and sell it today you would earn a total of 119.00 from holding Focus Media Information or generate 21.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Insurance of vs. Focus Media Information
Performance |
| Timeline |
| Peoples Insurance |
| Focus Media Information |
Peoples Insurance and Focus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Focus Media
The main advantage of trading using opposite Peoples Insurance and Focus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance 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.| Peoples Insurance vs. Emdoor Information Co | Peoples Insurance vs. Focus Media Information | Peoples Insurance vs. Dawning Information Industry | Peoples Insurance vs. Guilin Seamild Foods |
| Focus Media vs. Vohringer Home Technology | Focus Media vs. FSPG Hi Tech Co | Focus Media vs. Suofeiya Home Collection | Focus Media vs. State Grid InformationCommunication |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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