Correlation Between ROPEOK Technology and Guocheng Mining
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By analyzing existing cross correlation between ROPEOK Technology Group and Guocheng Mining Co, you can compare the effects of market volatilities on ROPEOK Technology and Guocheng Mining 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 Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of ROPEOK Technology and Guocheng Mining.
Diversification Opportunities for ROPEOK Technology and Guocheng Mining
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ROPEOK and Guocheng is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding ROPEOK Technology Group and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining 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 Guocheng Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guocheng Mining has no effect on the direction of ROPEOK Technology i.e., ROPEOK Technology and Guocheng Mining go up and down completely randomly.
Pair Corralation between ROPEOK Technology and Guocheng Mining
Assuming the 90 days trading horizon ROPEOK Technology is expected to generate 1.22 times less return on investment than Guocheng Mining. But when comparing it to its historical volatility, ROPEOK Technology Group is 1.17 times less risky than Guocheng Mining. It trades about 0.13 of its potential returns per unit of risk. Guocheng Mining Co is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,223 in Guocheng Mining Co on August 30, 2024 and sell it today you would earn a total of 123.00 from holding Guocheng Mining Co or generate 10.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ROPEOK Technology Group vs. Guocheng Mining Co
Performance |
| Timeline |
| ROPEOK Technology |
| Guocheng Mining |
ROPEOK Technology and Guocheng Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ROPEOK Technology and Guocheng Mining
The main advantage of trading using opposite ROPEOK Technology and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ROPEOK Technology position performs unexpectedly, Guocheng Mining 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 Guocheng Mining will offset losses from the drop in Guocheng Mining's long position.| ROPEOK Technology vs. China State Construction | ROPEOK Technology vs. Huafa Industrial Co | ROPEOK Technology vs. China International Capital | ROPEOK Technology vs. Kweichow Moutai Co |
| Guocheng Mining vs. Uroica Mining Safety | Guocheng Mining vs. Chenzhou Jingui Silver | Guocheng Mining vs. Zhengzhou Coal Mining | Guocheng Mining vs. Shenyang Blue Silver |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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