Correlation Between Montage Technology and Lingyuan Iron
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By analyzing existing cross correlation between Montage Technology Co and Lingyuan Iron Steel, you can compare the effects of market volatilities on Montage Technology and Lingyuan Iron 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 Lingyuan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Montage Technology and Lingyuan Iron.
Diversification Opportunities for Montage Technology and Lingyuan Iron
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Montage and Lingyuan is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Montage Technology Co and Lingyuan Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lingyuan Iron Steel 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 Lingyuan Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lingyuan Iron Steel has no effect on the direction of Montage Technology i.e., Montage Technology and Lingyuan Iron go up and down completely randomly.
Pair Corralation between Montage Technology and Lingyuan Iron
Assuming the 90 days trading horizon Montage Technology Co is expected to generate 1.15 times more return on investment than Lingyuan Iron. However, Montage Technology is 1.15 times more volatile than Lingyuan Iron Steel. It trades about 0.02 of its potential returns per unit of risk. Lingyuan Iron Steel is currently generating about -0.07 per unit of risk. If you would invest 6,790 in Montage Technology Co on November 1, 2024 and sell it today you would earn a total of 14.00 from holding Montage Technology Co or generate 0.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Montage Technology Co vs. Lingyuan Iron Steel
Performance |
| Timeline |
| Montage Technology |
| Lingyuan Iron Steel |
Montage Technology and Lingyuan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Montage Technology and Lingyuan Iron
The main advantage of trading using opposite Montage Technology and Lingyuan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Montage Technology position performs unexpectedly, Lingyuan Iron 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 Lingyuan Iron will offset losses from the drop in Lingyuan Iron's long position.| Montage Technology vs. Tieling Newcity Investment | Montage Technology vs. Aluminum Corp of | Montage Technology vs. Shanghai Material Trading | Montage Technology vs. Henan Shuanghui Investment |
| Lingyuan Iron vs. Uxi Unicomp Technology | Lingyuan Iron vs. Suzhou Industrial Park | Lingyuan Iron vs. Guangzhou KingTeller Technology | Lingyuan Iron vs. Montage Technology 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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