Correlation Between Shanghai Yanpu and Focus Media
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By analyzing existing cross correlation between Shanghai Yanpu Metal and Focus Media Information, you can compare the effects of market volatilities on Shanghai Yanpu 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 Shanghai Yanpu with a short position of Focus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Focus Media.
Diversification Opportunities for Shanghai Yanpu and Focus Media
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Focus is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal 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 Shanghai Yanpu 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 Shanghai Yanpu Metal 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 Shanghai Yanpu i.e., Shanghai Yanpu and Focus Media go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Focus Media
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 2.03 times more return on investment than Focus Media. However, Shanghai Yanpu is 2.03 times more volatile than Focus Media Information. It trades about 0.06 of its potential returns per unit of risk. Focus Media Information is currently generating about -0.09 per unit of risk. If you would invest 3,767 in Shanghai Yanpu Metal on September 5, 2024 and sell it today you would earn a total of 113.00 from holding Shanghai Yanpu Metal or generate 3.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shanghai Yanpu Metal vs. Focus Media Information
Performance |
Timeline |
Shanghai Yanpu Metal |
Focus Media Information |
Shanghai Yanpu and Focus Media Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shanghai Yanpu and Focus Media
The main advantage of trading using opposite Shanghai Yanpu and Focus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu 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.Shanghai Yanpu vs. Songz Automobile Air | Shanghai Yanpu vs. Tianjin Silvery Dragon | Shanghai Yanpu vs. Hainan Mining Co | Shanghai Yanpu vs. Guangzhou Automobile Group |
Focus Media vs. Luyin Investment Group | Focus Media vs. Zhejiang Qianjiang Motorcycle | Focus Media vs. Chengdu Xingrong Investment | Focus Media vs. Songz Automobile Air |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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