Correlation Between Guocheng Mining and ROPEOK Technology
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By analyzing existing cross correlation between Guocheng Mining Co and ROPEOK Technology Group, you can compare the effects of market volatilities on Guocheng Mining 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 Guocheng Mining with a short position of ROPEOK Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and ROPEOK Technology.
Diversification Opportunities for Guocheng Mining and ROPEOK Technology
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guocheng and ROPEOK is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining 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 Guocheng Mining 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 Guocheng Mining 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 Guocheng Mining i.e., Guocheng Mining and ROPEOK Technology go up and down completely randomly.
Pair Corralation between Guocheng Mining and ROPEOK Technology
Assuming the 90 days trading horizon Guocheng Mining is expected to generate 1.55 times less return on investment than ROPEOK Technology. But when comparing it to its historical volatility, Guocheng Mining Co is 1.16 times less risky than ROPEOK Technology. It trades about 0.05 of its potential returns per unit of risk. ROPEOK Technology Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 771.00 in ROPEOK Technology Group on September 1, 2024 and sell it today you would earn a total of 180.00 from holding ROPEOK Technology Group or generate 23.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. ROPEOK Technology Group
Performance |
| Timeline |
| Guocheng Mining |
| ROPEOK Technology |
Guocheng Mining and ROPEOK Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and ROPEOK Technology
The main advantage of trading using opposite Guocheng Mining and ROPEOK Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining 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.| Guocheng Mining vs. Kweichow Moutai Co | Guocheng Mining vs. Contemporary Amperex Technology | Guocheng Mining vs. G bits Network Technology | Guocheng Mining vs. BYD Co Ltd |
| ROPEOK Technology vs. Longmaster Information Tech | ROPEOK Technology vs. Emdoor Information Co | ROPEOK Technology vs. AVCON Information Tech | ROPEOK Technology vs. Nancal Energy Saving Tech |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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