Correlation Between Montage Technology and Guangzhou Restaurants
Specify exactly 2 symbols:
By analyzing existing cross correlation between Montage Technology Co and Guangzhou Restaurants Group, you can compare the effects of market volatilities on Montage Technology and Guangzhou Restaurants 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 Guangzhou Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Montage Technology and Guangzhou Restaurants.
Diversification Opportunities for Montage Technology and Guangzhou Restaurants
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Montage and Guangzhou is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Montage Technology Co and Guangzhou Restaurants Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Restaurants 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 Guangzhou Restaurants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Restaurants has no effect on the direction of Montage Technology i.e., Montage Technology and Guangzhou Restaurants go up and down completely randomly.
Pair Corralation between Montage Technology and Guangzhou Restaurants
Assuming the 90 days trading horizon Montage Technology Co is expected to generate 1.88 times more return on investment than Guangzhou Restaurants. However, Montage Technology is 1.88 times more volatile than Guangzhou Restaurants Group. It trades about 0.16 of its potential returns per unit of risk. Guangzhou Restaurants Group is currently generating about -0.06 per unit of risk. If you would invest 6,391 in Montage Technology Co on November 5, 2024 and sell it today you would earn a total of 413.00 from holding Montage Technology Co or generate 6.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Montage Technology Co vs. Guangzhou Restaurants Group
Performance |
| Timeline |
| Montage Technology |
| Guangzhou Restaurants |
Montage Technology and Guangzhou Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Montage Technology and Guangzhou Restaurants
The main advantage of trading using opposite Montage Technology and Guangzhou Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Montage Technology position performs unexpectedly, Guangzhou Restaurants 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 Guangzhou Restaurants will offset losses from the drop in Guangzhou Restaurants' long position.| Montage Technology vs. Sunny Loan Top | Montage Technology vs. Sinomach General Machinery | Montage Technology vs. Guangzhou KDT Machinery | Montage Technology vs. Zhejiang Yinlun Machinery |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |