Correlation Between Montage Technology and Shenzhen Zhongzhuang
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By analyzing existing cross correlation between Montage Technology Co and Shenzhen Zhongzhuang Construction, you can compare the effects of market volatilities on Montage Technology and Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Montage Technology and Shenzhen Zhongzhuang.
Diversification Opportunities for Montage Technology and Shenzhen Zhongzhuang
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Montage and Shenzhen is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Montage Technology Co and Shenzhen Zhongzhuang Construct in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Zhongzhuang has no effect on the direction of Montage Technology i.e., Montage Technology and Shenzhen Zhongzhuang go up and down completely randomly.
Pair Corralation between Montage Technology and Shenzhen Zhongzhuang
Assuming the 90 days trading horizon Montage Technology Co is expected to generate 0.97 times more return on investment than Shenzhen Zhongzhuang. However, Montage Technology Co is 1.04 times less risky than Shenzhen Zhongzhuang. It trades about 0.02 of its potential returns per unit of risk. Shenzhen Zhongzhuang Construction is currently generating about -0.01 per unit of risk. If you would invest 5,952 in Montage Technology Co on October 13, 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Montage Technology Co vs. Shenzhen Zhongzhuang Construct
Performance |
| Timeline |
| Montage Technology |
| Shenzhen Zhongzhuang |
Montage Technology and Shenzhen Zhongzhuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Montage Technology and Shenzhen Zhongzhuang
The main advantage of trading using opposite Montage Technology and Shenzhen Zhongzhuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Montage Technology position performs unexpectedly, Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang will offset losses from the drop in Shenzhen Zhongzhuang's long position.| Montage Technology vs. Jiangsu Yueda Investment | Montage Technology vs. Henan Shuanghui Investment | Montage Technology vs. Chenzhou Jingui Silver | Montage Technology vs. Hunan Investment Group |
| Shenzhen Zhongzhuang vs. Montage Technology Co | Shenzhen Zhongzhuang vs. Linewell Software Co | Shenzhen Zhongzhuang vs. Kuang Chi Technologies | Shenzhen Zhongzhuang vs. Bosera CMSK Industrial |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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