Correlation Between Focus Media and Shenzhen MYS
Specify exactly 2 symbols:
By analyzing existing cross correlation between Focus Media Information and Shenzhen MYS Environmental, you can compare the effects of market volatilities on Focus Media and Shenzhen MYS 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 Focus Media with a short position of Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Media and Shenzhen MYS.
Diversification Opportunities for Focus Media and Shenzhen MYS
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Focus and Shenzhen is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Focus Media Information and Shenzhen MYS Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MYS Environ and Focus Media 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 Focus Media Information are associated (or correlated) with Shenzhen MYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MYS Environ has no effect on the direction of Focus Media i.e., Focus Media and Shenzhen MYS go up and down completely randomly.
Pair Corralation between Focus Media and Shenzhen MYS
Assuming the 90 days trading horizon Focus Media is expected to generate 1.93 times less return on investment than Shenzhen MYS. But when comparing it to its historical volatility, Focus Media Information is 1.36 times less risky than Shenzhen MYS. It trades about 0.15 of its potential returns per unit of risk. Shenzhen MYS Environmental is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 248.00 in Shenzhen MYS Environmental on September 3, 2024 and sell it today you would earn a total of 127.00 from holding Shenzhen MYS Environmental or generate 51.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Focus Media Information vs. Shenzhen MYS Environmental
Performance |
Timeline |
Focus Media Information |
Shenzhen MYS Environ |
Focus Media and Shenzhen MYS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Focus Media and Shenzhen MYS
The main advantage of trading using opposite Focus Media and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Media position performs unexpectedly, Shenzhen MYS 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 Shenzhen MYS will offset losses from the drop in Shenzhen MYS's long position.Focus Media vs. Agricultural Bank of | Focus Media vs. China Construction Bank | Focus Media vs. Postal Savings Bank | Focus Media vs. Bank of Communications |
Shenzhen MYS vs. Guangdong Liantai Environmental | Shenzhen MYS vs. Harvest Fund Management | Shenzhen MYS vs. Sanbo Hospital Management | Shenzhen MYS vs. Tianjin Capital Environmental |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |