Correlation Between Montage Technology and Healthcare
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By analyzing existing cross correlation between Montage Technology Co and Healthcare Co, you can compare the effects of market volatilities on Montage Technology and Healthcare 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 Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Montage Technology and Healthcare.
Diversification Opportunities for Montage Technology and Healthcare
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Montage and Healthcare is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Montage Technology Co and Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthcare 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 Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthcare has no effect on the direction of Montage Technology i.e., Montage Technology and Healthcare go up and down completely randomly.
Pair Corralation between Montage Technology and Healthcare
Assuming the 90 days trading horizon Montage Technology Co is expected to generate 1.3 times more return on investment than Healthcare. However, Montage Technology is 1.3 times more volatile than Healthcare Co. It trades about 0.07 of its potential returns per unit of risk. Healthcare Co is currently generating about -0.03 per unit of risk. If you would invest 4,480 in Montage Technology Co on October 29, 2024 and sell it today you would earn a total of 2,324 from holding Montage Technology Co or generate 51.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Montage Technology Co vs. Healthcare Co
Performance |
| Timeline |
| Montage Technology |
| Healthcare |
Montage Technology and Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Montage Technology and Healthcare
The main advantage of trading using opposite Montage Technology and Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Montage Technology position performs unexpectedly, Healthcare 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 Healthcare will offset losses from the drop in Healthcare's long position.| Montage Technology vs. Jiangsu Financial Leasing | Montage Technology vs. JCHX Mining Management | Montage Technology vs. Cicc Fund Management | Montage Technology vs. Kingclean Electric Co |
| Healthcare vs. Shanghai Jinfeng Wine | Healthcare vs. Holitech Technology Co | Healthcare vs. iSoftStone Information Technology | Healthcare vs. Beijing Kaiwen Education |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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