Correlation Between Guangzhou Hongli and Montage Technology
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By analyzing existing cross correlation between Guangzhou Hongli Opto and Montage Technology Co, you can compare the effects of market volatilities on Guangzhou Hongli 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 Hongli with a short position of Montage Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Hongli and Montage Technology.
Diversification Opportunities for Guangzhou Hongli and Montage Technology
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Montage is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Hongli Opto 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 Hongli 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 Hongli Opto 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 Hongli i.e., Guangzhou Hongli and Montage Technology go up and down completely randomly.
Pair Corralation between Guangzhou Hongli and Montage Technology
Assuming the 90 days trading horizon Guangzhou Hongli is expected to generate 13.57 times less return on investment than Montage Technology. In addition to that, Guangzhou Hongli is 1.07 times more volatile than Montage Technology Co. It trades about 0.0 of its total potential returns per unit of risk. Montage Technology Co is currently generating about 0.02 per unit of volatility. If you would invest 6,011 in Montage Technology Co on October 16, 2024 and sell it today you would earn a total of 280.00 from holding Montage Technology Co or generate 4.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Hongli Opto vs. Montage Technology Co
Performance |
| Timeline |
| Guangzhou Hongli Opto |
| Montage Technology |
Guangzhou Hongli and Montage Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Hongli and Montage Technology
The main advantage of trading using opposite Guangzhou Hongli and Montage Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Hongli 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 Hongli vs. Montage Technology Co | Guangzhou Hongli vs. HanS Laser Tech | Guangzhou Hongli vs. Sharetronic Data Technology | Guangzhou Hongli vs. CITIC Guoan Information |
| Montage Technology vs. Ningbo Kangqiang Electronics | Montage Technology vs. Success Electronics | Montage Technology vs. HeBei Jinniu Chemical | Montage Technology vs. Ningxia Younglight 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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