Correlation Between Montage Technology and Cabio Biotech
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By analyzing existing cross correlation between Montage Technology Co and Cabio Biotech Wuhan, you can compare the effects of market volatilities on Montage Technology and Cabio Biotech 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 Cabio Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Montage Technology and Cabio Biotech.
Diversification Opportunities for Montage Technology and Cabio Biotech
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Montage and Cabio is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Montage Technology Co and Cabio Biotech Wuhan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cabio Biotech Wuhan 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 Cabio Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cabio Biotech Wuhan has no effect on the direction of Montage Technology i.e., Montage Technology and Cabio Biotech go up and down completely randomly.
Pair Corralation between Montage Technology and Cabio Biotech
Assuming the 90 days trading horizon Montage Technology Co is expected to generate 0.93 times more return on investment than Cabio Biotech. However, Montage Technology Co is 1.07 times less risky than Cabio Biotech. It trades about 0.02 of its potential returns per unit of risk. Cabio Biotech Wuhan is currently generating about -0.03 per unit of risk. If you would invest 5,952 in Montage Technology Co on October 16, 2024 and sell it today you would earn a total of 339.00 from holding Montage Technology Co or generate 5.7% 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. Cabio Biotech Wuhan
Performance |
| Timeline |
| Montage Technology |
| Cabio Biotech Wuhan |
Montage Technology and Cabio Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Montage Technology and Cabio Biotech
The main advantage of trading using opposite Montage Technology and Cabio Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Montage Technology position performs unexpectedly, Cabio Biotech 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 Cabio Biotech will offset losses from the drop in Cabio Biotech's long position.| Montage Technology vs. Ningbo Kangqiang Electronics | Montage Technology vs. Success Electronics | Montage Technology vs. HeBei Jinniu Chemical | Montage Technology vs. Ningxia Younglight Chemicals |
| Cabio Biotech vs. Ming Yang Smart | Cabio Biotech vs. 159681 | Cabio Biotech vs. 159005 | Cabio Biotech vs. Loctek Ergonomic Technology |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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