Correlation Between Cabio Biotech and Montage Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Cabio Biotech Wuhan and Montage Technology Co, you can compare the effects of market volatilities on Cabio Biotech 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 Cabio Biotech with a short position of Montage Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cabio Biotech and Montage Technology.
Diversification Opportunities for Cabio Biotech and Montage Technology
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cabio and Montage is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Cabio Biotech Wuhan and Montage Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Montage Technology and Cabio Biotech 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 Cabio Biotech Wuhan 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 Cabio Biotech i.e., Cabio Biotech and Montage Technology go up and down completely randomly.
Pair Corralation between Cabio Biotech and Montage Technology
Assuming the 90 days trading horizon Cabio Biotech Wuhan is expected to under-perform the Montage Technology. In addition to that, Cabio Biotech is 1.07 times more volatile than Montage Technology Co. It trades about -0.03 of its total potential returns per unit of risk. Montage Technology Co is currently generating about 0.02 per unit of volatility. 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 |
Cabio Biotech Wuhan vs. Montage Technology Co
Performance |
| Timeline |
| Cabio Biotech Wuhan |
| Montage Technology |
Cabio Biotech and Montage Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cabio Biotech and Montage Technology
The main advantage of trading using opposite Cabio Biotech and Montage Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cabio Biotech 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.| Cabio Biotech vs. Ming Yang Smart | Cabio Biotech vs. 159681 | Cabio Biotech vs. 159005 | Cabio Biotech vs. Loctek Ergonomic Technology |
| Montage Technology vs. Ningbo Kangqiang Electronics | Montage Technology vs. Success Electronics | Montage Technology vs. HeBei Jinniu Chemical | Montage Technology vs. Ningxia Younglight Chemicals |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |