Correlation Between Shaanxi Broadcast and Focus Media
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By analyzing existing cross correlation between Shaanxi Broadcast TV and Focus Media Information, you can compare the effects of market volatilities on Shaanxi Broadcast 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 Shaanxi Broadcast with a short position of Focus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Broadcast and Focus Media.
Diversification Opportunities for Shaanxi Broadcast and Focus Media
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shaanxi and Focus is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Broadcast TV 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 Shaanxi Broadcast 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 Shaanxi Broadcast TV 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 Shaanxi Broadcast i.e., Shaanxi Broadcast and Focus Media go up and down completely randomly.
Pair Corralation between Shaanxi Broadcast and Focus Media
Assuming the 90 days trading horizon Shaanxi Broadcast TV is expected to generate 2.2 times more return on investment than Focus Media. However, Shaanxi Broadcast is 2.2 times more volatile than Focus Media Information. It trades about 0.1 of its potential returns per unit of risk. Focus Media Information is currently generating about -0.03 per unit of risk. If you would invest 267.00 in Shaanxi Broadcast TV on September 25, 2024 and sell it today you would earn a total of 13.00 from holding Shaanxi Broadcast TV or generate 4.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shaanxi Broadcast TV vs. Focus Media Information
Performance |
Timeline |
Shaanxi Broadcast |
Focus Media Information |
Shaanxi Broadcast and Focus Media Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shaanxi Broadcast and Focus Media
The main advantage of trading using opposite Shaanxi Broadcast and Focus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Broadcast 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.Shaanxi Broadcast vs. Industrial and Commercial | Shaanxi Broadcast vs. Kweichow Moutai Co | Shaanxi Broadcast vs. Agricultural Bank of | Shaanxi Broadcast vs. China Mobile Limited |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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