Correlation Between XiaMen HongXin and Montage Technology
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By analyzing existing cross correlation between XiaMen HongXin Electron tech and Montage Technology Co, you can compare the effects of market volatilities on XiaMen HongXin 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 XiaMen HongXin with a short position of Montage Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of XiaMen HongXin and Montage Technology.
Diversification Opportunities for XiaMen HongXin and Montage Technology
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XiaMen and Montage is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding XiaMen HongXin Electron tech and Montage Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Montage Technology and XiaMen HongXin 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 XiaMen HongXin Electron tech 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 XiaMen HongXin i.e., XiaMen HongXin and Montage Technology go up and down completely randomly.
Pair Corralation between XiaMen HongXin and Montage Technology
Assuming the 90 days trading horizon XiaMen HongXin Electron tech is expected to generate 2.14 times more return on investment than Montage Technology. However, XiaMen HongXin is 2.14 times more volatile than Montage Technology Co. It trades about 0.06 of its potential returns per unit of risk. Montage Technology Co is currently generating about 0.09 per unit of risk. If you would invest 2,072 in XiaMen HongXin Electron tech on November 4, 2024 and sell it today you would earn a total of 75.00 from holding XiaMen HongXin Electron tech or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XiaMen HongXin Electron tech vs. Montage Technology Co
Performance |
| Timeline |
| XiaMen HongXin Electron |
| Montage Technology |
XiaMen HongXin and Montage Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XiaMen HongXin and Montage Technology
The main advantage of trading using opposite XiaMen HongXin and Montage Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XiaMen HongXin 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.| XiaMen HongXin vs. Allwin Telecommunication Co | XiaMen HongXin vs. Bank of Communications | XiaMen HongXin vs. State Grid InformationCommunication | XiaMen HongXin vs. Bomesc Offshore Engineering |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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