Correlation Between Zhuhai Comleader and Focus Media
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By analyzing existing cross correlation between Zhuhai Comleader Information and Focus Media Information, you can compare the effects of market volatilities on Zhuhai Comleader 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 Zhuhai Comleader with a short position of Focus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhuhai Comleader and Focus Media.
Diversification Opportunities for Zhuhai Comleader and Focus Media
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhuhai and Focus is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Zhuhai Comleader Information 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 Zhuhai Comleader 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 Zhuhai Comleader Information 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 Zhuhai Comleader i.e., Zhuhai Comleader and Focus Media go up and down completely randomly.
Pair Corralation between Zhuhai Comleader and Focus Media
Assuming the 90 days trading horizon Zhuhai Comleader Information is expected to under-perform the Focus Media. In addition to that, Zhuhai Comleader is 2.18 times more volatile than Focus Media Information. It trades about -0.06 of its total potential returns per unit of risk. Focus Media Information is currently generating about -0.12 per unit of volatility. If you would invest 720.00 in Focus Media Information on September 1, 2024 and sell it today you would lose (30.00) from holding Focus Media Information or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhuhai Comleader Information vs. Focus Media Information
Performance |
| Timeline |
| Zhuhai Comleader Inf |
| Focus Media Information |
Zhuhai Comleader and Focus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhuhai Comleader and Focus Media
The main advantage of trading using opposite Zhuhai Comleader and Focus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhuhai Comleader 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.| Zhuhai Comleader vs. Sportsoul Co Ltd | Zhuhai Comleader vs. Everdisplay Optronics Shanghai | Zhuhai Comleader vs. Unisplendour Corp | Zhuhai Comleader vs. Ping An Insurance |
| Focus Media vs. Semiconductor Manufacturing Intl | Focus Media vs. Anhui Conch Cement | Focus Media vs. Sungrow Power Supply | Focus Media vs. Shenzhen New Nanshan |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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