Correlation Between Focus Media and Jiangsu Yanghe
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By analyzing existing cross correlation between Focus Media Information and Jiangsu Yanghe Brewery, you can compare the effects of market volatilities on Focus Media and Jiangsu Yanghe 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 Jiangsu Yanghe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Media and Jiangsu Yanghe.
Diversification Opportunities for Focus Media and Jiangsu Yanghe
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Focus and Jiangsu is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Focus Media Information and Jiangsu Yanghe Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yanghe Brewery 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 Jiangsu Yanghe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yanghe Brewery has no effect on the direction of Focus Media i.e., Focus Media and Jiangsu Yanghe go up and down completely randomly.
Pair Corralation between Focus Media and Jiangsu Yanghe
Assuming the 90 days trading horizon Focus Media Information is expected to generate 0.84 times more return on investment than Jiangsu Yanghe. However, Focus Media Information is 1.2 times less risky than Jiangsu Yanghe. It trades about 0.11 of its potential returns per unit of risk. Jiangsu Yanghe Brewery is currently generating about 0.0 per unit of risk. If you would invest 627.00 in Focus Media Information on September 26, 2024 and sell it today you would earn a total of 86.00 from holding Focus Media Information or generate 13.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Focus Media Information vs. Jiangsu Yanghe Brewery
Performance |
Timeline |
Focus Media Information |
Jiangsu Yanghe Brewery |
Focus Media and Jiangsu Yanghe Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Focus Media and Jiangsu Yanghe
The main advantage of trading using opposite Focus Media and Jiangsu Yanghe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Media position performs unexpectedly, Jiangsu Yanghe 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 Jiangsu Yanghe will offset losses from the drop in Jiangsu Yanghe's long position.Focus Media vs. Industrial and Commercial | Focus Media vs. Agricultural Bank of | Focus Media vs. China Construction Bank | Focus Media vs. Bank of China |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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