Correlation Between Montage Technology and Xiangyang Automobile
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By analyzing existing cross correlation between Montage Technology Co and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on Montage Technology and Xiangyang Automobile 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 Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Montage Technology and Xiangyang Automobile.
Diversification Opportunities for Montage Technology and Xiangyang Automobile
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Montage and Xiangyang is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Montage Technology Co and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile 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 Xiangyang Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyang Automobile has no effect on the direction of Montage Technology i.e., Montage Technology and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between Montage Technology and Xiangyang Automobile
Assuming the 90 days trading horizon Montage Technology Co is expected to generate 0.73 times more return on investment than Xiangyang Automobile. However, Montage Technology Co is 1.37 times less risky than Xiangyang Automobile. It trades about -0.1 of its potential returns per unit of risk. Xiangyang Automobile Bearing is currently generating about -0.16 per unit of risk. If you would invest 6,895 in Montage Technology Co on October 16, 2024 and sell it today you would lose (604.00) from holding Montage Technology Co or give up 8.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Montage Technology Co vs. Xiangyang Automobile Bearing
Performance |
| Timeline |
| Montage Technology |
| Xiangyang Automobile |
Montage Technology and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Montage Technology and Xiangyang Automobile
The main advantage of trading using opposite Montage Technology and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Montage Technology position performs unexpectedly, Xiangyang Automobile 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 Xiangyang Automobile will offset losses from the drop in Xiangyang Automobile's long position.| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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