Correlation Between ROPEOK Technology and Dongguan Aohai
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By analyzing existing cross correlation between ROPEOK Technology Group and Dongguan Aohai Technology, you can compare the effects of market volatilities on ROPEOK Technology and Dongguan Aohai 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 Dongguan Aohai. Check out your portfolio center. Please also check ongoing floating volatility patterns of ROPEOK Technology and Dongguan Aohai.
Diversification Opportunities for ROPEOK Technology and Dongguan Aohai
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ROPEOK and Dongguan is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding ROPEOK Technology Group and Dongguan Aohai Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Aohai Technology 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 Dongguan Aohai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Aohai Technology has no effect on the direction of ROPEOK Technology i.e., ROPEOK Technology and Dongguan Aohai go up and down completely randomly.
Pair Corralation between ROPEOK Technology and Dongguan Aohai
Assuming the 90 days trading horizon ROPEOK Technology Group is expected to under-perform the Dongguan Aohai. But the stock apears to be less risky and, when comparing its historical volatility, ROPEOK Technology Group is 1.38 times less risky than Dongguan Aohai. The stock trades about -0.06 of its potential returns per unit of risk. The Dongguan Aohai Technology is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 3,251 in Dongguan Aohai Technology on September 27, 2024 and sell it today you would earn a total of 801.00 from holding Dongguan Aohai Technology or generate 24.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ROPEOK Technology Group vs. Dongguan Aohai Technology
Performance |
| Timeline |
| ROPEOK Technology |
| Dongguan Aohai Technology |
ROPEOK Technology and Dongguan Aohai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ROPEOK Technology and Dongguan Aohai
The main advantage of trading using opposite ROPEOK Technology and Dongguan Aohai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ROPEOK Technology position performs unexpectedly, Dongguan Aohai 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 Dongguan Aohai will offset losses from the drop in Dongguan Aohai's long position.| ROPEOK Technology vs. Wintao Communications Co | ROPEOK Technology vs. Shenyang Chemical Industry | ROPEOK Technology vs. Quectel Wireless Solutions | ROPEOK Technology vs. Guangdong Shenglu Telecommunication |
| Dongguan Aohai vs. Pengxin International Mining | Dongguan Aohai vs. Guocheng Mining Co | Dongguan Aohai vs. Zhangjiagang Freetrade Science | Dongguan Aohai vs. Chongqing Changan Automobile |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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