Correlation Between ANT and Montage Technology
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By analyzing existing cross correlation between ANT and Montage Technology Co, you can compare the effects of market volatilities on ANT 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 ANT with a short position of Montage Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Montage Technology.
Diversification Opportunities for ANT and Montage Technology
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANT and Montage is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Montage Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Montage Technology and ANT 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 ANT 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 ANT i.e., ANT and Montage Technology go up and down completely randomly.
Pair Corralation between ANT and Montage Technology
Assuming the 90 days trading horizon ANT is expected to generate 18.87 times more return on investment than Montage Technology. However, ANT is 18.87 times more volatile than Montage Technology Co. It trades about 0.1 of its potential returns per unit of risk. Montage Technology Co is currently generating about 0.02 per unit of risk. If you would invest 288.00 in ANT on October 12, 2024 and sell it today you would lose (141.00) from holding ANT or give up 48.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 62.26% |
| Values | Daily Returns |
ANT vs. Montage Technology Co
Performance |
| Timeline |
| ANT |
| Montage Technology |
ANT and Montage Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Montage Technology
The main advantage of trading using opposite ANT and Montage Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT 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.The idea behind ANT and Montage Technology Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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