Correlation Between ROPEOK Technology and Hunan Investment
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By analyzing existing cross correlation between ROPEOK Technology Group and Hunan Investment Group, you can compare the effects of market volatilities on ROPEOK Technology and Hunan Investment 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 ROPEOK Technology with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of ROPEOK Technology and Hunan Investment.
Diversification Opportunities for ROPEOK Technology and Hunan Investment
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ROPEOK and Hunan is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding ROPEOK Technology Group and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and ROPEOK Technology 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 ROPEOK Technology Group are associated (or correlated) with Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of ROPEOK Technology i.e., ROPEOK Technology and Hunan Investment go up and down completely randomly.
Pair Corralation between ROPEOK Technology and Hunan Investment
Assuming the 90 days trading horizon ROPEOK Technology Group is expected to generate 2.07 times more return on investment than Hunan Investment. However, ROPEOK Technology is 2.07 times more volatile than Hunan Investment Group. It trades about 0.34 of its potential returns per unit of risk. Hunan Investment Group is currently generating about -0.06 per unit of risk. If you would invest 876.00 in ROPEOK Technology Group on November 28, 2024 and sell it today you would earn a total of 137.00 from holding ROPEOK Technology Group or generate 15.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ROPEOK Technology Group vs. Hunan Investment Group
Performance |
| Timeline |
| ROPEOK Technology |
| Hunan Investment |
ROPEOK Technology and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ROPEOK Technology and Hunan Investment
The main advantage of trading using opposite ROPEOK Technology and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ROPEOK Technology position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.| ROPEOK Technology vs. Industrial and Commercial | ROPEOK Technology vs. Agricultural Bank of | ROPEOK Technology vs. China Construction Bank | ROPEOK Technology vs. Bank of China |
| Hunan Investment vs. Jiangsu Jinling Sports | Hunan Investment vs. Rising Nonferrous Metals | Hunan Investment vs. Shanghai Rongtai Health | Hunan Investment vs. By health |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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