Correlation Between China Vanke and ROPEOK Technology
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By analyzing existing cross correlation between China Vanke Co and ROPEOK Technology Group, you can compare the effects of market volatilities on China Vanke and ROPEOK 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 China Vanke with a short position of ROPEOK Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and ROPEOK Technology.
Diversification Opportunities for China Vanke and ROPEOK Technology
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and ROPEOK is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke Co and ROPEOK Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ROPEOK Technology and China Vanke 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 China Vanke Co are associated (or correlated) with ROPEOK Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ROPEOK Technology has no effect on the direction of China Vanke i.e., China Vanke and ROPEOK Technology go up and down completely randomly.
Pair Corralation between China Vanke and ROPEOK Technology
Assuming the 90 days trading horizon China Vanke Co is expected to under-perform the ROPEOK Technology. But the stock apears to be less risky and, when comparing its historical volatility, China Vanke Co is 1.13 times less risky than ROPEOK Technology. The stock trades about -0.03 of its potential returns per unit of risk. The ROPEOK Technology Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 854.00 in ROPEOK Technology Group on October 26, 2024 and sell it today you would earn a total of 35.00 from holding ROPEOK Technology Group or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Vanke Co vs. ROPEOK Technology Group
Performance |
| Timeline |
| China Vanke |
| ROPEOK Technology |
China Vanke and ROPEOK Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Vanke and ROPEOK Technology
The main advantage of trading using opposite China Vanke and ROPEOK Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke position performs unexpectedly, ROPEOK 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 ROPEOK Technology will offset losses from the drop in ROPEOK Technology's long position.| China Vanke vs. Ningbo Kangqiang Electronics | China Vanke vs. Anhui Jianghuai Automobile | China Vanke vs. Huizhou Speed Wireless | China Vanke vs. Epoxy Base Electronic |
| ROPEOK Technology vs. China State Construction | ROPEOK Technology vs. Poly Real Estate | ROPEOK Technology vs. China Vanke Co | ROPEOK Technology vs. China Merchants Shekou |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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