Correlation Between Montage Technology and Shenyang Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Montage Technology Co and Shenyang Chemical Industry, you can compare the effects of market volatilities on Montage Technology and Shenyang Chemical 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 Shenyang Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Montage Technology and Shenyang Chemical.
Diversification Opportunities for Montage Technology and Shenyang Chemical
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Montage and Shenyang is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Montage Technology Co and Shenyang Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Chemical 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 Shenyang Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Chemical has no effect on the direction of Montage Technology i.e., Montage Technology and Shenyang Chemical go up and down completely randomly.
Pair Corralation between Montage Technology and Shenyang Chemical
Assuming the 90 days trading horizon Montage Technology Co is expected to generate 1.17 times more return on investment than Shenyang Chemical. However, Montage Technology is 1.17 times more volatile than Shenyang Chemical Industry. It trades about 0.02 of its potential returns per unit of risk. Shenyang Chemical Industry is currently generating about -0.02 per unit of risk. 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Montage Technology Co vs. Shenyang Chemical Industry
Performance |
| Timeline |
| Montage Technology |
| Shenyang Chemical |
Montage Technology and Shenyang Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Montage Technology and Shenyang Chemical
The main advantage of trading using opposite Montage Technology and Shenyang Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Montage Technology position performs unexpectedly, Shenyang Chemical 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 Shenyang Chemical will offset losses from the drop in Shenyang Chemical'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 |
| Shenyang Chemical vs. Luyin Investment Group | Shenyang Chemical vs. Chengdu Xingrong Investment | Shenyang Chemical vs. Nuode Investment Co | Shenyang Chemical vs. Western Metal Materials |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |