Correlation Between Shandong Intco and Montage Technology
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By analyzing existing cross correlation between Shandong Intco Medical and Montage Technology Co, you can compare the effects of market volatilities on Shandong Intco 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 Shandong Intco with a short position of Montage Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Intco and Montage Technology.
Diversification Opportunities for Shandong Intco and Montage Technology
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and Montage is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Intco Medical and Montage Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Montage Technology and Shandong Intco 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 Shandong Intco Medical 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 Shandong Intco i.e., Shandong Intco and Montage Technology go up and down completely randomly.
Pair Corralation between Shandong Intco and Montage Technology
Assuming the 90 days trading horizon Shandong Intco Medical is expected to generate 0.78 times more return on investment than Montage Technology. However, Shandong Intco Medical is 1.28 times less risky than Montage Technology. It trades about 0.38 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 2,387 in Shandong Intco Medical on November 4, 2024 and sell it today you would earn a total of 332.00 from holding Shandong Intco Medical or generate 13.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Intco Medical vs. Montage Technology Co
Performance |
| Timeline |
| Shandong Intco Medical |
| Montage Technology |
Shandong Intco and Montage Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Intco and Montage Technology
The main advantage of trading using opposite Shandong Intco and Montage Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Intco 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.| Shandong Intco vs. Tianjin Hi Tech Development | Shandong Intco vs. Mengtian Home Group | Shandong Intco vs. Nanjing OLO Home | Shandong Intco vs. Beijing Kingsoft Office |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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