Correlation Between Bank of China and Focus Media
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By analyzing existing cross correlation between Bank of China and Focus Media Information, you can compare the effects of market volatilities on Bank of China 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 Bank of China with a short position of Focus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Focus Media.
Diversification Opportunities for Bank of China and Focus Media
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bank and Focus is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China 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 Bank of China 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 Bank of China 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 Bank of China i.e., Bank of China and Focus Media go up and down completely randomly.
Pair Corralation between Bank of China and Focus Media
Assuming the 90 days trading horizon Bank of China is expected to generate 0.62 times more return on investment than Focus Media. However, Bank of China is 1.61 times less risky than Focus Media. It trades about -0.03 of its potential returns per unit of risk. Focus Media Information is currently generating about -0.18 per unit of risk. If you would invest 495.00 in Bank of China on August 25, 2024 and sell it today you would lose (4.00) from holding Bank of China or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Focus Media Information
Performance |
| Timeline |
| Bank of China |
| Focus Media Information |
Bank of China and Focus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Focus Media
The main advantage of trading using opposite Bank of China and Focus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China 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.| Bank of China vs. Sinofibers Technology Co | Bank of China vs. Beijing Kaiwen Education | Bank of China vs. HanS Laser Tech | Bank of China vs. Tianshui Huatian Technology |
| Focus Media vs. Agricultural Bank of | Focus Media vs. Industrial and Commercial | Focus Media vs. Bank of China | Focus Media vs. China Construction Bank |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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