Correlation Between ROPEOK Technology and Shanghai Metersbonwe
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By analyzing existing cross correlation between ROPEOK Technology Group and Shanghai Metersbonwe FashionAccessories, you can compare the effects of market volatilities on ROPEOK Technology and Shanghai Metersbonwe 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 Shanghai Metersbonwe. Check out your portfolio center. Please also check ongoing floating volatility patterns of ROPEOK Technology and Shanghai Metersbonwe.
Diversification Opportunities for ROPEOK Technology and Shanghai Metersbonwe
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ROPEOK and Shanghai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ROPEOK Technology Group and Shanghai Metersbonwe FashionAc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Metersbonwe 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 Shanghai Metersbonwe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Metersbonwe has no effect on the direction of ROPEOK Technology i.e., ROPEOK Technology and Shanghai Metersbonwe go up and down completely randomly.
Pair Corralation between ROPEOK Technology and Shanghai Metersbonwe
Assuming the 90 days trading horizon ROPEOK Technology is expected to generate 1.73 times less return on investment than Shanghai Metersbonwe. But when comparing it to its historical volatility, ROPEOK Technology Group is 1.24 times less risky than Shanghai Metersbonwe. It trades about 0.06 of its potential returns per unit of risk. Shanghai Metersbonwe FashionAccessories is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 132.00 in Shanghai Metersbonwe FashionAccessories on November 28, 2024 and sell it today you would earn a total of 84.00 from holding Shanghai Metersbonwe FashionAccessories or generate 63.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ROPEOK Technology Group vs. Shanghai Metersbonwe FashionAc
Performance |
| Timeline |
| ROPEOK Technology |
| Shanghai Metersbonwe |
ROPEOK Technology and Shanghai Metersbonwe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ROPEOK Technology and Shanghai Metersbonwe
The main advantage of trading using opposite ROPEOK Technology and Shanghai Metersbonwe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ROPEOK Technology position performs unexpectedly, Shanghai Metersbonwe 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 Shanghai Metersbonwe will offset losses from the drop in Shanghai Metersbonwe'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 |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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