Correlation Between Ningbo MedicalSystem and Focus Media
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and Focus Media Information, you can compare the effects of market volatilities on Ningbo MedicalSystem 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 Ningbo MedicalSystem with a short position of Focus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and Focus Media.
Diversification Opportunities for Ningbo MedicalSystem and Focus Media
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningbo and Focus is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno 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 Ningbo MedicalSystem 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 Ningbo MedicalSystem Biotechnology 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 Ningbo MedicalSystem i.e., Ningbo MedicalSystem and Focus Media go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and Focus Media
Assuming the 90 days trading horizon Ningbo MedicalSystem is expected to generate 4.24 times less return on investment than Focus Media. In addition to that, Ningbo MedicalSystem is 1.14 times more volatile than Focus Media Information. It trades about 0.0 of its total potential returns per unit of risk. Focus Media Information is currently generating about 0.02 per unit of volatility. If you would invest 620.00 in Focus Media Information on September 28, 2024 and sell it today you would earn a total of 86.00 from holding Focus Media Information or generate 13.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Ningbo MedicalSystem Biotechno vs. Focus Media Information
Performance |
Timeline |
Ningbo MedicalSystem |
Focus Media Information |
Ningbo MedicalSystem and Focus Media Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ningbo MedicalSystem and Focus Media
The main advantage of trading using opposite Ningbo MedicalSystem and Focus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem 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.Ningbo MedicalSystem vs. Industrial and Commercial | Ningbo MedicalSystem vs. Agricultural Bank of | Ningbo MedicalSystem vs. China Construction Bank | Ningbo MedicalSystem vs. Bank of China |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |