Correlation Between Montage Technology and Lotus Health
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By analyzing existing cross correlation between Montage Technology Co and Lotus Health Group, you can compare the effects of market volatilities on Montage Technology and Lotus Health 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 Lotus Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Montage Technology and Lotus Health.
Diversification Opportunities for Montage Technology and Lotus Health
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Montage and Lotus is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Montage Technology Co and Lotus Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotus Health Group 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 Lotus Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotus Health Group has no effect on the direction of Montage Technology i.e., Montage Technology and Lotus Health go up and down completely randomly.
Pair Corralation between Montage Technology and Lotus Health
Assuming the 90 days trading horizon Montage Technology Co is expected to generate 0.7 times more return on investment than Lotus Health. However, Montage Technology Co is 1.42 times less risky than Lotus Health. It trades about -0.02 of its potential returns per unit of risk. Lotus Health Group is currently generating about -0.12 per unit of risk. If you would invest 6,839 in Montage Technology Co on October 11, 2024 and sell it today you would lose (209.00) from holding Montage Technology Co or give up 3.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Montage Technology Co vs. Lotus Health Group
Performance |
| Timeline |
| Montage Technology |
| Lotus Health Group |
Montage Technology and Lotus Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Montage Technology and Lotus Health
The main advantage of trading using opposite Montage Technology and Lotus Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Montage Technology position performs unexpectedly, Lotus Health 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 Lotus Health will offset losses from the drop in Lotus Health's long position.| Montage Technology vs. Runjian Communication Co | Montage Technology vs. Sunwave Communications Co | Montage Technology vs. Guangxi Wuzhou Communications | Montage Technology vs. Anhui Jianghuai Automobile |
| Lotus Health vs. Shandong Longquan Pipeline | Lotus Health vs. Qilu Bank Co | Lotus Health vs. Montage Technology Co | Lotus Health vs. Jinhe Biotechnology 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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