Correlation Between China State and Focus Media
Specify exactly 2 symbols:
By analyzing existing cross correlation between China State Construction and Focus Media Information, you can compare the effects of market volatilities on China State 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 China State with a short position of Focus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Focus Media.
Diversification Opportunities for China State and Focus Media
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Focus is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction 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 China State 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 China State Construction 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 China State i.e., China State and Focus Media go up and down completely randomly.
Pair Corralation between China State and Focus Media
Assuming the 90 days trading horizon China State Construction is expected to generate 1.37 times more return on investment than Focus Media. However, China State is 1.37 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 -0.26 per unit of risk. If you would invest 614.00 in China State Construction on August 29, 2024 and sell it today you would lose (22.00) from holding China State Construction or give up 3.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Focus Media Information
Performance |
| Timeline |
| China State Construction |
| Focus Media Information |
China State and Focus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Focus Media
The main advantage of trading using opposite China State and Focus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State 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.| China State vs. Shenyang Chemical Industry | China State vs. Lianhe Chemical Technology | China State vs. North Huajin Chemical | China State vs. Maoming Petro Chemical Shihua |
| Focus Media vs. China State Construction | Focus Media vs. Huafa Industrial Co | Focus Media vs. China International Capital | Focus Media vs. Kweichow Moutai Co |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |