Correlation Between Focus Media and Hubeiyichang Transportation
Specify exactly 2 symbols:
By analyzing existing cross correlation between Focus Media Information and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on Focus Media and Hubeiyichang Transportation 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 Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Media and Hubeiyichang Transportation.
Diversification Opportunities for Focus Media and Hubeiyichang Transportation
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Focus and Hubeiyichang is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Focus Media Information and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation 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 Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of Focus Media i.e., Focus Media and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between Focus Media and Hubeiyichang Transportation
Assuming the 90 days trading horizon Focus Media Information is expected to generate 0.63 times more return on investment than Hubeiyichang Transportation. However, Focus Media Information is 1.59 times less risky than Hubeiyichang Transportation. It trades about -0.03 of its potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about -0.02 per unit of risk. If you would invest 694.00 in Focus Media Information on September 25, 2024 and sell it today you would lose (6.00) from holding Focus Media Information or give up 0.86% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Focus Media Information vs. Hubeiyichang Transportation Gr
Performance |
Timeline |
Focus Media Information |
Hubeiyichang Transportation |
Focus Media and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Focus Media and Hubeiyichang Transportation
The main advantage of trading using opposite Focus Media and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Media position performs unexpectedly, Hubeiyichang Transportation 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 Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation'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 |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories |