Correlation Between Jiujiang Shanshui and Montage Technology
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Montage Technology Co, you can compare the effects of market volatilities on Jiujiang Shanshui 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 Jiujiang Shanshui with a short position of Montage Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Montage Technology.
Diversification Opportunities for Jiujiang Shanshui and Montage Technology
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiujiang and Montage is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology and Montage Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Montage Technology and Jiujiang Shanshui 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 Jiujiang Shanshui Technology 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 Jiujiang Shanshui i.e., Jiujiang Shanshui and Montage Technology go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Montage Technology
Assuming the 90 days trading horizon Jiujiang Shanshui Technology is expected to under-perform the Montage Technology. But the stock apears to be less risky and, when comparing its historical volatility, Jiujiang Shanshui Technology is 1.38 times less risky than Montage Technology. The stock trades about -0.01 of its potential returns per unit of risk. The Montage Technology Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 5,952 in Montage Technology Co on October 16, 2024 and sell it today you would earn a total of 339.00 from holding Montage Technology Co or generate 5.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiujiang Shanshui Technology vs. Montage Technology Co
Performance |
| Timeline |
| Jiujiang Shanshui |
| Montage Technology |
Jiujiang Shanshui and Montage Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiujiang Shanshui and Montage Technology
The main advantage of trading using opposite Jiujiang Shanshui and Montage Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui 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.| Jiujiang Shanshui vs. Shenzhen Glory Medical | Jiujiang Shanshui vs. Xiangyu Medical Co | Jiujiang Shanshui vs. Qingdao Haier Biomedical | Jiujiang Shanshui vs. Haima Automobile Group |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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