Correlation Between ROPEOK Technology and China Securities
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By analyzing existing cross correlation between ROPEOK Technology Group and China Securities 800, you can compare the effects of market volatilities on ROPEOK Technology and China Securities 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 China Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of ROPEOK Technology and China Securities.
Diversification Opportunities for ROPEOK Technology and China Securities
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ROPEOK and China is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding ROPEOK Technology Group and China Securities 800 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Securities 800 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 China Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Securities 800 has no effect on the direction of ROPEOK Technology i.e., ROPEOK Technology and China Securities go up and down completely randomly.
Pair Corralation between ROPEOK Technology and China Securities
Assuming the 90 days trading horizon ROPEOK Technology Group is expected to generate 2.32 times more return on investment than China Securities. However, ROPEOK Technology is 2.32 times more volatile than China Securities 800. It trades about 0.02 of its potential returns per unit of risk. China Securities 800 is currently generating about -0.11 per unit of risk. If you would invest 894.00 in ROPEOK Technology Group on August 29, 2024 and sell it today you would earn a total of 5.00 from holding ROPEOK Technology Group or generate 0.56% 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. China Securities 800
Performance |
| Timeline |
ROPEOK Technology and China Securities Volatility Contrast
Predicted Return Density |
| Returns |
ROPEOK Technology Group
Pair trading matchups for ROPEOK Technology
China Securities 800
Pair trading matchups for China Securities
Pair Trading with ROPEOK Technology and China Securities
The main advantage of trading using opposite ROPEOK Technology and China Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ROPEOK Technology position performs unexpectedly, China Securities 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 China Securities will offset losses from the drop in China Securities' 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 |
| China Securities vs. Tibet Huayu Mining | China Securities vs. Keeson Technology Corp | China Securities vs. OBiO Technology Corp | China Securities vs. ROPEOK Technology 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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