Correlation Between Qingdao Foods and ROPEOK Technology
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By analyzing existing cross correlation between Qingdao Foods Co and ROPEOK Technology Group, you can compare the effects of market volatilities on Qingdao Foods 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 Qingdao Foods with a short position of ROPEOK Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and ROPEOK Technology.
Diversification Opportunities for Qingdao Foods and ROPEOK Technology
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qingdao and ROPEOK is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods 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 Qingdao Foods 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 Qingdao Foods 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 Qingdao Foods i.e., Qingdao Foods and ROPEOK Technology go up and down completely randomly.
Pair Corralation between Qingdao Foods and ROPEOK Technology
Assuming the 90 days trading horizon Qingdao Foods is expected to generate 1.22 times less return on investment than ROPEOK Technology. But when comparing it to its historical volatility, Qingdao Foods Co is 1.79 times less risky than ROPEOK Technology. It trades about 0.0 of its potential returns per unit of risk. ROPEOK Technology Group is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,180 in ROPEOK Technology Group on October 16, 2024 and sell it today you would lose (339.00) from holding ROPEOK Technology Group or give up 28.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. ROPEOK Technology Group
Performance |
| Timeline |
| Qingdao Foods |
| ROPEOK Technology |
Qingdao Foods and ROPEOK Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and ROPEOK Technology
The main advantage of trading using opposite Qingdao Foods and ROPEOK Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods 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.| Qingdao Foods vs. Unisplendour Corp | Qingdao Foods vs. Strait Innovation Internet | Qingdao Foods vs. Wuhan Yangtze Communication | Qingdao Foods vs. Jonjee Hi tech Industrial |
| ROPEOK Technology vs. Jiangsu Financial Leasing | ROPEOK Technology vs. Qingdao Foods Co | ROPEOK Technology vs. Industrial Bank Co | ROPEOK Technology vs. Sichuan Teway Food |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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