Correlation Between New China and ROPEOK Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between New China Life and ROPEOK Technology Group, you can compare the effects of market volatilities on New China 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 New China with a short position of ROPEOK Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of New China and ROPEOK Technology.
Diversification Opportunities for New China and ROPEOK Technology
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between New and ROPEOK is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding New China Life and ROPEOK Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ROPEOK Technology and New China 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 New China Life 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 New China i.e., New China and ROPEOK Technology go up and down completely randomly.
Pair Corralation between New China and ROPEOK Technology
Assuming the 90 days trading horizon New China Life is expected to generate 0.58 times more return on investment than ROPEOK Technology. However, New China Life is 1.71 times less risky than ROPEOK Technology. It trades about 0.06 of its potential returns per unit of risk. ROPEOK Technology Group is currently generating about 0.01 per unit of risk. If you would invest 2,836 in New China Life on September 5, 2024 and sell it today you would earn a total of 2,041 from holding New China Life or generate 71.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
New China Life vs. ROPEOK Technology Group
Performance |
| Timeline |
| New China Life |
| ROPEOK Technology |
New China and ROPEOK Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New China and ROPEOK Technology
The main advantage of trading using opposite New China and ROPEOK Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New China 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.| New China vs. Xiwang Foodstuffs Co | New China vs. Unigroup Guoxin Microelectronics | New China vs. Puyang Huicheng Electronic | New China vs. Youyou Foods Co |
| ROPEOK Technology vs. New China Life | ROPEOK Technology vs. Ming Yang Smart | ROPEOK Technology vs. 159681 | ROPEOK Technology vs. 159005 |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |