Correlation Between Shanghai Action and ROPEOK Technology
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By analyzing existing cross correlation between Shanghai Action Education and ROPEOK Technology Group, you can compare the effects of market volatilities on Shanghai Action 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 Action with a short position of ROPEOK Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Action and ROPEOK Technology.
Diversification Opportunities for Shanghai Action and ROPEOK Technology
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and ROPEOK is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Action Education 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 Action 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 Action Education 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 Action i.e., Shanghai Action and ROPEOK Technology go up and down completely randomly.
Pair Corralation between Shanghai Action and ROPEOK Technology
Assuming the 90 days trading horizon Shanghai Action Education is expected to generate 1.21 times more return on investment than ROPEOK Technology. However, Shanghai Action is 1.21 times more volatile than ROPEOK Technology Group. It trades about 0.06 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 3,555 in Shanghai Action Education on September 12, 2024 and sell it today you would earn a total of 98.00 from holding Shanghai Action Education or generate 2.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Action Education vs. ROPEOK Technology Group
Performance |
| Timeline |
| Shanghai Action Education |
| ROPEOK Technology |
Shanghai Action and ROPEOK Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Action and ROPEOK Technology
The main advantage of trading using opposite Shanghai Action and ROPEOK Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Action 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 Action vs. Lutian Machinery Co | Shanghai Action vs. PetroChina Co Ltd | Shanghai Action vs. Bank of China | Shanghai Action vs. Gansu Jiu Steel |
| ROPEOK Technology vs. Gansu Jiu Steel | ROPEOK Technology vs. Shandong Mining Machinery | ROPEOK Technology vs. Aba Chemicals Corp | ROPEOK Technology vs. BlueFocus Communication Group |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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