Correlation Between Shanghai Action and Focus Media
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By analyzing existing cross correlation between Shanghai Action Education and Focus Media Information, you can compare the effects of market volatilities on Shanghai Action 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 Shanghai Action with a short position of Focus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Action and Focus Media.
Diversification Opportunities for Shanghai Action and Focus Media
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Focus is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Action Education 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 Shanghai Action 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 Shanghai Action Education 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 Shanghai Action i.e., Shanghai Action and Focus Media go up and down completely randomly.
Pair Corralation between Shanghai Action and Focus Media
Assuming the 90 days trading horizon Shanghai Action Education is expected to generate 2.07 times more return on investment than Focus Media. However, Shanghai Action is 2.07 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 -0.08 per unit of risk. If you would invest 3,508 in Shanghai Action Education on September 13, 2024 and sell it today you would earn a total of 142.00 from holding Shanghai Action Education or generate 4.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Action Education vs. Focus Media Information
Performance |
| Timeline |
| Shanghai Action Education |
| Focus Media Information |
Shanghai Action and Focus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Action and Focus Media
The main advantage of trading using opposite Shanghai Action and Focus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Action 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.| Shanghai Action vs. Kingclean Electric Co | Shanghai Action vs. Daoming OpticsChemical Co | Shanghai Action vs. Lianhe Chemical Technology | Shanghai Action vs. Miracll Chemicals Co |
| Focus Media vs. Industrial and Commercial | Focus Media vs. China Construction Bank | Focus Media vs. Bank of China | Focus Media vs. Agricultural Bank of |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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