Correlation Between Dongguan Aohai and ROPEOK Technology
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By analyzing existing cross correlation between Dongguan Aohai Technology and ROPEOK Technology Group, you can compare the effects of market volatilities on Dongguan Aohai 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 Dongguan Aohai with a short position of ROPEOK Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Aohai and ROPEOK Technology.
Diversification Opportunities for Dongguan Aohai and ROPEOK Technology
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongguan and ROPEOK is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Aohai Technology and ROPEOK Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ROPEOK Technology and Dongguan Aohai 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 Dongguan Aohai Technology 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 Dongguan Aohai i.e., Dongguan Aohai and ROPEOK Technology go up and down completely randomly.
Pair Corralation between Dongguan Aohai and ROPEOK Technology
Assuming the 90 days trading horizon Dongguan Aohai Technology is expected to generate 1.38 times more return on investment than ROPEOK Technology. However, Dongguan Aohai is 1.38 times more volatile than ROPEOK Technology Group. It trades about 0.26 of its potential returns per unit of risk. ROPEOK Technology Group is currently generating about -0.06 per unit of risk. If you would invest 3,251 in Dongguan Aohai Technology on September 27, 2024 and sell it today you would earn a total of 801.00 from holding Dongguan Aohai Technology or generate 24.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongguan Aohai Technology vs. ROPEOK Technology Group
Performance |
| Timeline |
| Dongguan Aohai Technology |
| ROPEOK Technology |
Dongguan Aohai and ROPEOK Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongguan Aohai and ROPEOK Technology
The main advantage of trading using opposite Dongguan Aohai and ROPEOK Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Aohai 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.| Dongguan Aohai vs. Pengxin International Mining | Dongguan Aohai vs. Guocheng Mining Co | Dongguan Aohai vs. Zhangjiagang Freetrade Science | Dongguan Aohai vs. Chongqing Changan Automobile |
| ROPEOK Technology vs. Wintao Communications Co | ROPEOK Technology vs. Shenyang Chemical Industry | ROPEOK Technology vs. Quectel Wireless Solutions | ROPEOK Technology vs. Guangdong Shenglu Telecommunication |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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