Correlation Between Fujian Longzhou and Montage Technology
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By analyzing existing cross correlation between Fujian Longzhou Transportation and Montage Technology Co, you can compare the effects of market volatilities on Fujian Longzhou 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 Fujian Longzhou with a short position of Montage Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Montage Technology.
Diversification Opportunities for Fujian Longzhou and Montage Technology
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fujian and Montage is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Montage Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Montage Technology and Fujian Longzhou 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 Fujian Longzhou Transportation 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 Fujian Longzhou i.e., Fujian Longzhou and Montage Technology go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Montage Technology
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to under-perform the Montage Technology. In addition to that, Fujian Longzhou is 1.06 times more volatile than Montage Technology Co. It trades about -0.08 of its total potential returns per unit of risk. Montage Technology Co is currently generating about -0.07 per unit of volatility. If you would invest 7,119 in Montage Technology Co on October 30, 2024 and sell it today you would lose (315.00) from holding Montage Technology Co or give up 4.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. Montage Technology Co
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Montage Technology |
Fujian Longzhou and Montage Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Montage Technology
The main advantage of trading using opposite Fujian Longzhou and Montage Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou 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.| Fujian Longzhou vs. Giantec Semiconductor Corp | Fujian Longzhou vs. Union Semiconductor Co | Fujian Longzhou vs. Eyebright Medical Technology | Fujian Longzhou vs. Montage Technology Co |
| Montage Technology vs. Haima Automobile Group | Montage Technology vs. Anhui Jianghuai Automobile | Montage Technology vs. Juneyao Airlines | Montage Technology vs. Hubei Xingfa Chemicals |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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