Correlation Between Hunan Investment and ROPEOK Technology
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By analyzing existing cross correlation between Hunan Investment Group and ROPEOK Technology Group, you can compare the effects of market volatilities on Hunan Investment 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 Hunan Investment with a short position of ROPEOK Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and ROPEOK Technology.
Diversification Opportunities for Hunan Investment and ROPEOK Technology
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hunan and ROPEOK is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and ROPEOK Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ROPEOK Technology and Hunan Investment 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 Hunan Investment Group 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 Hunan Investment i.e., Hunan Investment and ROPEOK Technology go up and down completely randomly.
Pair Corralation between Hunan Investment and ROPEOK Technology
Assuming the 90 days trading horizon Hunan Investment Group is expected to under-perform the ROPEOK Technology. But the stock apears to be less risky and, when comparing its historical volatility, Hunan Investment Group is 2.07 times less risky than ROPEOK Technology. The stock trades about -0.06 of its potential returns per unit of risk. The ROPEOK Technology Group is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 876.00 in ROPEOK Technology Group on November 28, 2024 and sell it today you would earn a total of 137.00 from holding ROPEOK Technology Group or generate 15.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. ROPEOK Technology Group
Performance |
| Timeline |
| Hunan Investment |
| ROPEOK Technology |
Hunan Investment and ROPEOK Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and ROPEOK Technology
The main advantage of trading using opposite Hunan Investment and ROPEOK Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment 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.| Hunan Investment vs. Jiangsu Jinling Sports | Hunan Investment vs. Rising Nonferrous Metals | Hunan Investment vs. Shanghai Rongtai Health | Hunan Investment vs. By health |
| ROPEOK Technology vs. Industrial and Commercial | ROPEOK Technology vs. Agricultural Bank of | ROPEOK Technology vs. China Construction Bank | ROPEOK Technology vs. Bank of China |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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