Correlation Between Postal Savings and ROPEOK Technology
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By analyzing existing cross correlation between Postal Savings Bank and ROPEOK Technology Group, you can compare the effects of market volatilities on Postal Savings 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 Postal Savings with a short position of ROPEOK Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and ROPEOK Technology.
Diversification Opportunities for Postal Savings and ROPEOK Technology
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Postal and ROPEOK is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and ROPEOK Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ROPEOK Technology and Postal Savings 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 Postal Savings Bank 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 Postal Savings i.e., Postal Savings and ROPEOK Technology go up and down completely randomly.
Pair Corralation between Postal Savings and ROPEOK Technology
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.38 times more return on investment than ROPEOK Technology. However, Postal Savings Bank is 2.64 times less risky than ROPEOK Technology. It trades about 0.01 of its potential returns per unit of risk. ROPEOK Technology Group is currently generating about -0.02 per unit of risk. If you would invest 515.00 in Postal Savings Bank on August 31, 2024 and sell it today you would earn a total of 15.00 from holding Postal Savings Bank or generate 2.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. ROPEOK Technology Group
Performance |
| Timeline |
| Postal Savings Bank |
| ROPEOK Technology |
Postal Savings and ROPEOK Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and ROPEOK Technology
The main advantage of trading using opposite Postal Savings and ROPEOK Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings 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.| Postal Savings vs. Lotus Health Group | Postal Savings vs. Nanjing Putian Telecommunications | Postal Savings vs. Spring Airlines Co | Postal Savings vs. Fiberhome Telecommunication Technologies |
| ROPEOK Technology vs. Success Electronics | ROPEOK Technology vs. TongFu Microelectronics Co | ROPEOK Technology vs. Puyang Huicheng Electronic | ROPEOK Technology vs. Aurora Optoelectronics Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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