Correlation Between Focus Media and Zhejiang Kingland
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By analyzing existing cross correlation between Focus Media Information and Zhejiang Kingland Pipeline, you can compare the effects of market volatilities on Focus Media and Zhejiang Kingland 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 Zhejiang Kingland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Media and Zhejiang Kingland.
Diversification Opportunities for Focus Media and Zhejiang Kingland
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Focus and Zhejiang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Focus Media Information and Zhejiang Kingland Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Kingland 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 Zhejiang Kingland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Kingland has no effect on the direction of Focus Media i.e., Focus Media and Zhejiang Kingland go up and down completely randomly.
Pair Corralation between Focus Media and Zhejiang Kingland
Assuming the 90 days trading horizon Focus Media Information is expected to under-perform the Zhejiang Kingland. But the stock apears to be less risky and, when comparing its historical volatility, Focus Media Information is 1.15 times less risky than Zhejiang Kingland. The stock trades about -0.09 of its potential returns per unit of risk. The Zhejiang Kingland Pipeline is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 623.00 in Zhejiang Kingland Pipeline on September 23, 2024 and sell it today you would lose (10.00) from holding Zhejiang Kingland Pipeline or give up 1.61% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Focus Media Information vs. Zhejiang Kingland Pipeline
Performance |
Timeline |
Focus Media Information |
Zhejiang Kingland |
Focus Media and Zhejiang Kingland Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Focus Media and Zhejiang Kingland
The main advantage of trading using opposite Focus Media and Zhejiang Kingland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Media position performs unexpectedly, Zhejiang Kingland 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 Zhejiang Kingland will offset losses from the drop in Zhejiang Kingland's long position.Focus Media vs. Duzhe Publishing Media | Focus Media vs. Jiangxi Naipu Mining | Focus Media vs. Zhengzhou Coal Mining | Focus Media vs. Heilongjiang Publishing Media |
Zhejiang Kingland vs. Xiamen Bank Co | Zhejiang Kingland vs. Chengdu B ray Media | Zhejiang Kingland vs. Focus Media Information | Zhejiang Kingland vs. Heilongjiang Publishing Media |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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