Correlation Between Eyebright Medical and Montage Technology
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By analyzing existing cross correlation between Eyebright Medical Technology and Montage Technology Co, you can compare the effects of market volatilities on Eyebright Medical and Montage Technology 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 Eyebright Medical with a short position of Montage Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eyebright Medical and Montage Technology.
Diversification Opportunities for Eyebright Medical and Montage Technology
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eyebright and Montage is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Eyebright Medical Technology and Montage Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Montage Technology and Eyebright Medical 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 Eyebright Medical Technology are associated (or correlated) with Montage Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Montage Technology has no effect on the direction of Eyebright Medical i.e., Eyebright Medical and Montage Technology go up and down completely randomly.
Pair Corralation between Eyebright Medical and Montage Technology
Assuming the 90 days trading horizon Eyebright Medical Technology is expected to generate 0.76 times more return on investment than Montage Technology. However, Eyebright Medical Technology is 1.31 times less risky than Montage Technology. It trades about 0.17 of its potential returns per unit of risk. Montage Technology Co is currently generating about -0.1 per unit of risk. If you would invest 9,255 in Eyebright Medical Technology on October 28, 2024 and sell it today you would earn a total of 692.00 from holding Eyebright Medical Technology or generate 7.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eyebright Medical Technology vs. Montage Technology Co
Performance |
| Timeline |
| Eyebright Medical |
| Montage Technology |
Eyebright Medical and Montage Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eyebright Medical and Montage Technology
The main advantage of trading using opposite Eyebright Medical and Montage Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eyebright Medical position performs unexpectedly, Montage Technology 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 Montage Technology will offset losses from the drop in Montage Technology's long position.| Eyebright Medical vs. Agricultural Bank of | Eyebright Medical vs. Industrial and Commercial | Eyebright Medical vs. Bank of China | Eyebright Medical vs. China Construction Bank |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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