Correlation Between Shanghai Shuixing and ROPEOK Technology
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By analyzing existing cross correlation between Shanghai Shuixing Home and ROPEOK Technology Group, you can compare the effects of market volatilities on Shanghai Shuixing 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 Shanghai Shuixing with a short position of ROPEOK Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shuixing and ROPEOK Technology.
Diversification Opportunities for Shanghai Shuixing and ROPEOK Technology
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shanghai and ROPEOK is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shuixing Home and ROPEOK Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ROPEOK Technology and Shanghai Shuixing 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 Shanghai Shuixing Home 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 Shanghai Shuixing i.e., Shanghai Shuixing and ROPEOK Technology go up and down completely randomly.
Pair Corralation between Shanghai Shuixing and ROPEOK Technology
Assuming the 90 days trading horizon Shanghai Shuixing Home is expected to generate 0.53 times more return on investment than ROPEOK Technology. However, Shanghai Shuixing Home is 1.88 times less risky than ROPEOK Technology. It trades about 0.03 of its potential returns per unit of risk. ROPEOK Technology Group is currently generating about 0.0 per unit of risk. If you would invest 1,329 in Shanghai Shuixing Home on October 15, 2024 and sell it today you would earn a total of 243.00 from holding Shanghai Shuixing Home or generate 18.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Shuixing Home vs. ROPEOK Technology Group
Performance |
| Timeline |
| Shanghai Shuixing Home |
| ROPEOK Technology |
Shanghai Shuixing and ROPEOK Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shuixing and ROPEOK Technology
The main advantage of trading using opposite Shanghai Shuixing and ROPEOK Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shuixing 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.| Shanghai Shuixing vs. Henan Shuanghui Investment | Shanghai Shuixing vs. Tianshui Huatian Technology | Shanghai Shuixing vs. 360 Security Technology | Shanghai Shuixing vs. Luyin Investment Group |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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