Correlation Between Montage Technology and Suzhou Mingzhi
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By analyzing existing cross correlation between Montage Technology Co and Suzhou Mingzhi Technology, you can compare the effects of market volatilities on Montage Technology and Suzhou Mingzhi 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 Suzhou Mingzhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Montage Technology and Suzhou Mingzhi.
Diversification Opportunities for Montage Technology and Suzhou Mingzhi
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Montage and Suzhou is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Montage Technology Co and Suzhou Mingzhi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Mingzhi Technology 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 Suzhou Mingzhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Mingzhi Technology has no effect on the direction of Montage Technology i.e., Montage Technology and Suzhou Mingzhi go up and down completely randomly.
Pair Corralation between Montage Technology and Suzhou Mingzhi
Assuming the 90 days trading horizon Montage Technology is expected to generate 1.39 times less return on investment than Suzhou Mingzhi. In addition to that, Montage Technology is 1.15 times more volatile than Suzhou Mingzhi Technology. It trades about 0.03 of its total potential returns per unit of risk. Suzhou Mingzhi Technology is currently generating about 0.04 per unit of volatility. If you would invest 1,769 in Suzhou Mingzhi Technology on October 25, 2024 and sell it today you would earn a total of 86.00 from holding Suzhou Mingzhi Technology or generate 4.86% 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. Suzhou Mingzhi Technology
Performance |
| Timeline |
| Montage Technology |
| Suzhou Mingzhi Technology |
Montage Technology and Suzhou Mingzhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Montage Technology and Suzhou Mingzhi
The main advantage of trading using opposite Montage Technology and Suzhou Mingzhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Montage Technology position performs unexpectedly, Suzhou Mingzhi 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 Suzhou Mingzhi will offset losses from the drop in Suzhou Mingzhi's long position.| Montage Technology vs. Shandong Intco Medical | Montage Technology vs. Nanning Chemical Industry | Montage Technology vs. Touchstone International Medical | Montage Technology vs. Guangdong Transtek Medical |
| Suzhou Mingzhi vs. Kweichow Moutai Co | Suzhou Mingzhi vs. Contemporary Amperex Technology | Suzhou Mingzhi vs. Beijing Roborock Technology | Suzhou Mingzhi vs. BYD Co Ltd |
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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