Correlation Between Montage Technology and Shanghai Broadband
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By analyzing existing cross correlation between Montage Technology Co and Shanghai Broadband Technology, you can compare the effects of market volatilities on Montage Technology and Shanghai Broadband 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 Shanghai Broadband. Check out your portfolio center. Please also check ongoing floating volatility patterns of Montage Technology and Shanghai Broadband.
Diversification Opportunities for Montage Technology and Shanghai Broadband
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Montage and Shanghai is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Montage Technology Co and Shanghai Broadband Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Broadband 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 Shanghai Broadband. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Broadband has no effect on the direction of Montage Technology i.e., Montage Technology and Shanghai Broadband go up and down completely randomly.
Pair Corralation between Montage Technology and Shanghai Broadband
Assuming the 90 days trading horizon Montage Technology Co is expected to generate 1.15 times more return on investment than Shanghai Broadband. However, Montage Technology is 1.15 times more volatile than Shanghai Broadband Technology. It trades about -0.03 of its potential returns per unit of risk. Shanghai Broadband Technology is currently generating about -0.16 per unit of risk. If you would invest 6,895 in Montage Technology Co on October 17, 2024 and sell it today you would lose (275.00) from holding Montage Technology Co or give up 3.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Montage Technology Co vs. Shanghai Broadband Technology
Performance |
| Timeline |
| Montage Technology |
| Shanghai Broadband |
Montage Technology and Shanghai Broadband Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Montage Technology and Shanghai Broadband
The main advantage of trading using opposite Montage Technology and Shanghai Broadband positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Montage Technology position performs unexpectedly, Shanghai Broadband 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 Shanghai Broadband will offset losses from the drop in Shanghai Broadband's long position.| Montage Technology vs. Qumei Furniture Group | Montage Technology vs. Goodwill E Health | Montage Technology vs. Everjoy Health Group | Montage Technology vs. Shandong Sinoglory Health |
| Shanghai Broadband vs. Shanghai Action Education | Shanghai Broadband vs. Montage Technology Co | Shanghai Broadband vs. HUAQIN TECHNOLOGY LTD | Shanghai Broadband vs. Guangdong Qunxing Toys |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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