Correlation Between Duzhe Publishing and Focus Media
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By analyzing existing cross correlation between Duzhe Publishing Media and Focus Media Information, you can compare the effects of market volatilities on Duzhe Publishing 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 Duzhe Publishing with a short position of Focus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duzhe Publishing and Focus Media.
Diversification Opportunities for Duzhe Publishing and Focus Media
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Duzhe and Focus is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Duzhe Publishing Media 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 Duzhe Publishing 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 Duzhe Publishing Media 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 Duzhe Publishing i.e., Duzhe Publishing and Focus Media go up and down completely randomly.
Pair Corralation between Duzhe Publishing and Focus Media
Assuming the 90 days trading horizon Duzhe Publishing Media is expected to generate 1.4 times more return on investment than Focus Media. However, Duzhe Publishing is 1.4 times more volatile than Focus Media Information. It trades about 0.19 of its potential returns per unit of risk. Focus Media Information is currently generating about 0.16 per unit of risk. If you would invest 479.00 in Duzhe Publishing Media on September 23, 2024 and sell it today you would earn a total of 206.00 from holding Duzhe Publishing Media or generate 43.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Duzhe Publishing Media vs. Focus Media Information
Performance |
Timeline |
Duzhe Publishing Media |
Focus Media Information |
Duzhe Publishing and Focus Media Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Duzhe Publishing and Focus Media
The main advantage of trading using opposite Duzhe Publishing and Focus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duzhe Publishing 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.Duzhe Publishing vs. PetroChina Co Ltd | Duzhe Publishing vs. China Mobile Limited | Duzhe Publishing vs. CNOOC Limited | Duzhe Publishing vs. Ping An Insurance |
Focus Media vs. Duzhe Publishing Media | Focus Media vs. Jiangxi Naipu Mining | Focus Media vs. Zhengzhou Coal Mining | Focus Media 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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