Correlation Between Montage Technology and Jiaozuo Wanfang
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By analyzing existing cross correlation between Montage Technology Co and Jiaozuo Wanfang Aluminum, you can compare the effects of market volatilities on Montage Technology and Jiaozuo Wanfang 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 Montage Technology with a short position of Jiaozuo Wanfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Montage Technology and Jiaozuo Wanfang.
Diversification Opportunities for Montage Technology and Jiaozuo Wanfang
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Montage and Jiaozuo is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Montage Technology Co and Jiaozuo Wanfang Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiaozuo Wanfang Aluminum and Montage Technology 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 Montage Technology Co are associated (or correlated) with Jiaozuo Wanfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiaozuo Wanfang Aluminum has no effect on the direction of Montage Technology i.e., Montage Technology and Jiaozuo Wanfang go up and down completely randomly.
Pair Corralation between Montage Technology and Jiaozuo Wanfang
Assuming the 90 days trading horizon Montage Technology Co is expected to generate 1.34 times more return on investment than Jiaozuo Wanfang. However, Montage Technology is 1.34 times more volatile than Jiaozuo Wanfang Aluminum. It trades about 0.16 of its potential returns per unit of risk. Jiaozuo Wanfang Aluminum is currently generating about 0.09 per unit of risk. If you would invest 6,391 in Montage Technology Co on November 6, 2024 and sell it today you would earn a total of 413.00 from holding Montage Technology Co or generate 6.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Montage Technology Co vs. Jiaozuo Wanfang Aluminum
Performance |
| Timeline |
| Montage Technology |
| Jiaozuo Wanfang Aluminum |
Montage Technology and Jiaozuo Wanfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Montage Technology and Jiaozuo Wanfang
The main advantage of trading using opposite Montage Technology and Jiaozuo Wanfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Montage Technology position performs unexpectedly, Jiaozuo Wanfang 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 Jiaozuo Wanfang will offset losses from the drop in Jiaozuo Wanfang's long position.| Montage Technology vs. Daoming OpticsChemical Co | Montage Technology vs. Shenzhen Noposion Agrochemicals | Montage Technology vs. Lier Chemical Co | Montage Technology vs. Liuzhou Chemical Industry |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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