Correlation Between Nanjing Putian and Montage Technology
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Montage Technology Co, you can compare the effects of market volatilities on Nanjing Putian 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 Nanjing Putian with a short position of Montage Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Montage Technology.
Diversification Opportunities for Nanjing Putian and Montage Technology
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nanjing and Montage is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Montage Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Montage Technology and Nanjing Putian 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 Nanjing Putian Telecommunications 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 Nanjing Putian i.e., Nanjing Putian and Montage Technology go up and down completely randomly.
Pair Corralation between Nanjing Putian and Montage Technology
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.3 times more return on investment than Montage Technology. However, Nanjing Putian is 1.3 times more volatile than Montage Technology Co. It trades about 0.01 of its potential returns per unit of risk. Montage Technology Co is currently generating about 0.01 per unit of risk. If you would invest 395.00 in Nanjing Putian Telecommunications on November 6, 2024 and sell it today you would lose (7.00) from holding Nanjing Putian Telecommunications or give up 1.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Montage Technology Co
Performance |
| Timeline |
| Nanjing Putian Telec |
| Montage Technology |
Nanjing Putian and Montage Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Montage Technology
The main advantage of trading using opposite Nanjing Putian and Montage Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian 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.| Nanjing Putian vs. Industrial and Commercial | Nanjing Putian vs. Kweichow Moutai Co | Nanjing Putian vs. Agricultural Bank of | Nanjing Putian vs. China Mobile Limited |
| Montage Technology vs. Daoming OpticsChemical Co | Montage Technology vs. Shenzhen Noposion Agrochemicals | Montage Technology vs. Lier Chemical Co | Montage Technology vs. Liuzhou Chemical Industry |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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