Correlation Between Montage Technology and Fujian Longzhou
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By analyzing existing cross correlation between Montage Technology Co and Fujian Longzhou Transportation, you can compare the effects of market volatilities on Montage Technology and Fujian Longzhou 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 Fujian Longzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Montage Technology and Fujian Longzhou.
Diversification Opportunities for Montage Technology and Fujian Longzhou
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Montage and Fujian is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Montage Technology Co and Fujian Longzhou Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Longzhou Tran 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 Fujian Longzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Longzhou Tran has no effect on the direction of Montage Technology i.e., Montage Technology and Fujian Longzhou go up and down completely randomly.
Pair Corralation between Montage Technology and Fujian Longzhou
Assuming the 90 days trading horizon Montage Technology Co is expected to generate 0.82 times more return on investment than Fujian Longzhou. However, Montage Technology Co is 1.21 times less risky than Fujian Longzhou. It trades about 0.02 of its potential returns per unit of risk. Fujian Longzhou Transportation is currently generating about 0.0 per unit of risk. If you would invest 6,064 in Montage Technology Co on October 31, 2024 and sell it today you would earn a total of 740.00 from holding Montage Technology Co or generate 12.2% 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. Fujian Longzhou Transportation
Performance |
| Timeline |
| Montage Technology |
| Fujian Longzhou Tran |
Montage Technology and Fujian Longzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Montage Technology and Fujian Longzhou
The main advantage of trading using opposite Montage Technology and Fujian Longzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Montage Technology position performs unexpectedly, Fujian Longzhou 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 Fujian Longzhou will offset losses from the drop in Fujian Longzhou's long position.| Montage Technology vs. Porton Fine Chemicals | Montage Technology vs. Hubei Xingfa Chemicals | Montage Technology vs. Ye Chiu Metal | Montage Technology vs. Anhui Transport Consulting |
| Fujian Longzhou vs. Jahen Household Products | Fujian Longzhou vs. Anhui Deli Household | Fujian Longzhou vs. Marssenger Kitchenware Co | Fujian Longzhou vs. Yankershop Food Co |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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