Correlation Between China Securities and Montage Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Securities 800 and Montage Technology Co, you can compare the effects of market volatilities on China Securities and Montage Technology 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 China Securities with a short position of Montage Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Montage Technology.
Diversification Opportunities for China Securities and Montage Technology
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Montage is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Montage Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Montage Technology and China Securities 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 China Securities 800 are associated (or correlated) with Montage Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Montage Technology has no effect on the direction of China Securities i.e., China Securities and Montage Technology go up and down completely randomly.
Pair Corralation between China Securities and Montage Technology
Assuming the 90 days trading horizon China Securities 800 is expected to under-perform the Montage Technology. But the index apears to be less risky and, when comparing its historical volatility, China Securities 800 is 3.47 times less risky than Montage Technology. The index trades about -0.29 of its potential returns per unit of risk. The Montage Technology Co is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 6,889 in Montage Technology Co on October 12, 2024 and sell it today you would lose (259.00) from holding Montage Technology Co or give up 3.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Montage Technology Co
Performance |
| Timeline |
China Securities and Montage Technology Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Montage Technology Co
Pair trading matchups for Montage Technology
Pair Trading with China Securities and Montage Technology
The main advantage of trading using opposite China Securities and Montage Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Montage Technology 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 Montage Technology will offset losses from the drop in Montage Technology's long position.| China Securities vs. Puya Semiconductor Shanghai | China Securities vs. Shanghai Shuixing Home | China Securities vs. Ningbo Homelink Eco iTech | China Securities vs. Shanghai V Test Semiconductor |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |