Correlation Between Guangzhou KingTeller and Montage Technology
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Montage Technology Co, you can compare the effects of market volatilities on Guangzhou KingTeller 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 Guangzhou KingTeller with a short position of Montage Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Montage Technology.
Diversification Opportunities for Guangzhou KingTeller and Montage Technology
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangzhou and Montage is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Montage Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Montage Technology and Guangzhou KingTeller 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 Guangzhou KingTeller Technology 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 Guangzhou KingTeller i.e., Guangzhou KingTeller and Montage Technology go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Montage Technology
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to under-perform the Montage Technology. In addition to that, Guangzhou KingTeller is 1.25 times more volatile than Montage Technology Co. It trades about -0.09 of its total potential returns per unit of risk. Montage Technology Co is currently generating about 0.01 per unit of volatility. If you would invest 6,687 in Montage Technology Co on October 18, 2024 and sell it today you would lose (67.00) from holding Montage Technology Co or give up 1.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou KingTeller Technolog vs. Montage Technology Co
Performance |
| Timeline |
| Guangzhou KingTeller |
| Montage Technology |
Guangzhou KingTeller and Montage Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Montage Technology
The main advantage of trading using opposite Guangzhou KingTeller and Montage Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller 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.| Guangzhou KingTeller vs. Hainan Mining Co | Guangzhou KingTeller vs. Shenyang Huitian Thermal | Guangzhou KingTeller vs. Bohai Leasing Co | Guangzhou KingTeller vs. Hefei Metalforming Mach |
| Montage Technology vs. Qumei Furniture Group | Montage Technology vs. Goodwill E Health | Montage Technology vs. Everjoy Health Group | Montage Technology vs. Shandong Sinoglory Health |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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