Correlation Between Guangdong Shenglu and ROPEOK Technology
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and ROPEOK Technology Group, you can compare the effects of market volatilities on Guangdong Shenglu 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 Guangdong Shenglu with a short position of ROPEOK Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and ROPEOK Technology.
Diversification Opportunities for Guangdong Shenglu and ROPEOK Technology
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and ROPEOK is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and ROPEOK Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ROPEOK Technology and Guangdong Shenglu 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 Guangdong Shenglu Telecommunication 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 Guangdong Shenglu i.e., Guangdong Shenglu and ROPEOK Technology go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and ROPEOK Technology
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the ROPEOK Technology. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Shenglu Telecommunication is 1.34 times less risky than ROPEOK Technology. The stock trades about -0.11 of its potential returns per unit of risk. The ROPEOK Technology Group is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 935.00 in ROPEOK Technology Group on September 28, 2024 and sell it today you would lose (26.00) from holding ROPEOK Technology Group or give up 2.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. ROPEOK Technology Group
Performance |
| Timeline |
| Guangdong Shenglu |
| ROPEOK Technology |
Guangdong Shenglu and ROPEOK Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and ROPEOK Technology
The main advantage of trading using opposite Guangdong Shenglu and ROPEOK Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu 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.| Guangdong Shenglu vs. Industrial and Commercial | Guangdong Shenglu vs. Agricultural Bank of | Guangdong Shenglu vs. China Construction Bank | Guangdong Shenglu vs. Bank of China |
| ROPEOK Technology vs. BeiGene | ROPEOK Technology vs. Kweichow Moutai Co | ROPEOK Technology vs. Beijing Roborock Technology | ROPEOK Technology vs. G bits Network Technology |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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