Correlation Between Montage Technology and Jiangsu Yueda
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By analyzing existing cross correlation between Montage Technology Co and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Montage Technology and Jiangsu Yueda 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 Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Montage Technology and Jiangsu Yueda.
Diversification Opportunities for Montage Technology and Jiangsu Yueda
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Montage and Jiangsu is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Montage Technology Co and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment 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 Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Montage Technology i.e., Montage Technology and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Montage Technology and Jiangsu Yueda
Assuming the 90 days trading horizon Montage Technology Co is expected to generate 1.49 times more return on investment than Jiangsu Yueda. However, Montage Technology is 1.49 times more volatile than Jiangsu Yueda Investment. It trades about 0.02 of its potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about -0.11 per unit of risk. If you would invest 6,738 in Montage Technology Co on October 30, 2024 and sell it today you would earn a total of 66.00 from holding Montage Technology Co or generate 0.98% 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. Jiangsu Yueda Investment
Performance |
| Timeline |
| Montage Technology |
| Jiangsu Yueda Investment |
Montage Technology and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Montage Technology and Jiangsu Yueda
The main advantage of trading using opposite Montage Technology and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Montage Technology position performs unexpectedly, Jiangsu Yueda 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 Jiangsu Yueda will offset losses from the drop in Jiangsu Yueda'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 |
| Jiangsu Yueda vs. Industrial and Commercial | Jiangsu Yueda vs. China Construction Bank | Jiangsu Yueda vs. Bank of China | Jiangsu Yueda vs. Agricultural Bank of |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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