Correlation Between Montage Technology and Guangdong Tianhe
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By analyzing existing cross correlation between Montage Technology Co and Guangdong Tianhe Agricultural, you can compare the effects of market volatilities on Montage Technology and Guangdong Tianhe 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 Guangdong Tianhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Montage Technology and Guangdong Tianhe.
Diversification Opportunities for Montage Technology and Guangdong Tianhe
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Montage and Guangdong is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Montage Technology Co and Guangdong Tianhe Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Tianhe Agr 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 Guangdong Tianhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Tianhe Agr has no effect on the direction of Montage Technology i.e., Montage Technology and Guangdong Tianhe go up and down completely randomly.
Pair Corralation between Montage Technology and Guangdong Tianhe
Assuming the 90 days trading horizon Montage Technology Co is expected to generate 1.18 times more return on investment than Guangdong Tianhe. However, Montage Technology is 1.18 times more volatile than Guangdong Tianhe Agricultural. It trades about 0.03 of its potential returns per unit of risk. Guangdong Tianhe Agricultural is currently generating about -0.02 per unit of risk. If you would invest 5,683 in Montage Technology Co on October 30, 2024 and sell it today you would earn a total of 1,121 from holding Montage Technology Co or generate 19.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Montage Technology Co vs. Guangdong Tianhe Agricultural
Performance |
| Timeline |
| Montage Technology |
| Guangdong Tianhe Agr |
Montage Technology and Guangdong Tianhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Montage Technology and Guangdong Tianhe
The main advantage of trading using opposite Montage Technology and Guangdong Tianhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Montage Technology position performs unexpectedly, Guangdong Tianhe 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 Guangdong Tianhe will offset losses from the drop in Guangdong Tianhe's long position.| Montage Technology vs. Haima Automobile Group | Montage Technology vs. Anhui Jianghuai Automobile | Montage Technology vs. Juneyao Airlines | Montage Technology vs. Hubei Xingfa Chemicals |
| Guangdong Tianhe vs. Longjian Road Bridge | Guangdong Tianhe vs. Sichuan Fulin Transportation | Guangdong Tianhe vs. Innovative Medical Management | Guangdong Tianhe vs. Shaanxi Broadcast TV |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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