Correlation Between Jiangsu Yueda and Montage Technology
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By analyzing existing cross correlation between Jiangsu Yueda Investment and Montage Technology Co, you can compare the effects of market volatilities on Jiangsu Yueda 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 Jiangsu Yueda with a short position of Montage Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and Montage Technology.
Diversification Opportunities for Jiangsu Yueda and Montage Technology
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jiangsu and Montage is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment and Montage Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Montage Technology and Jiangsu Yueda 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 Jiangsu Yueda Investment 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 Jiangsu Yueda i.e., Jiangsu Yueda and Montage Technology go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and Montage Technology
Assuming the 90 days trading horizon Jiangsu Yueda is expected to generate 4.51 times less return on investment than Montage Technology. But when comparing it to its historical volatility, Jiangsu Yueda Investment is 1.22 times less risky than Montage Technology. It trades about 0.01 of its potential returns per unit of risk. 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 14, 2024 and sell it today you would earn a total of 468.00 from holding Montage Technology Co or generate 7.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yueda Investment vs. Montage Technology Co
Performance |
| Timeline |
| Jiangsu Yueda Investment |
| Montage Technology |
Jiangsu Yueda and Montage Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yueda and Montage Technology
The main advantage of trading using opposite Jiangsu Yueda and Montage Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda 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.| Jiangsu Yueda vs. Beijing Baolande Software | Jiangsu Yueda vs. Ligao Foods CoLtd | Jiangsu Yueda vs. Bingo Software Co | Jiangsu Yueda vs. Bohai Leasing Co |
| Montage Technology vs. Jiangsu Yueda Investment | Montage Technology vs. Henan Shuanghui Investment | Montage Technology vs. Chenzhou Jingui Silver | Montage Technology vs. Hunan Investment Group |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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