Correlation Between ROPEOK Technology and Fujian Nanwang
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By analyzing existing cross correlation between ROPEOK Technology Group and Fujian Nanwang Environment, you can compare the effects of market volatilities on ROPEOK Technology and Fujian Nanwang 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 Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of ROPEOK Technology and Fujian Nanwang.
Diversification Opportunities for ROPEOK Technology and Fujian Nanwang
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ROPEOK and Fujian is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding ROPEOK Technology Group and Fujian Nanwang Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Nanwang Envir 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 Fujian Nanwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Nanwang Envir has no effect on the direction of ROPEOK Technology i.e., ROPEOK Technology and Fujian Nanwang go up and down completely randomly.
Pair Corralation between ROPEOK Technology and Fujian Nanwang
Assuming the 90 days trading horizon ROPEOK Technology Group is expected to under-perform the Fujian Nanwang. In addition to that, ROPEOK Technology is 1.88 times more volatile than Fujian Nanwang Environment. It trades about -0.27 of its total potential returns per unit of risk. Fujian Nanwang Environment is currently generating about 0.18 per unit of volatility. If you would invest 1,312 in Fujian Nanwang Environment on October 15, 2024 and sell it today you would earn a total of 87.00 from holding Fujian Nanwang Environment or generate 6.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ROPEOK Technology Group vs. Fujian Nanwang Environment
Performance |
| Timeline |
| ROPEOK Technology |
| Fujian Nanwang Envir |
ROPEOK Technology and Fujian Nanwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ROPEOK Technology and Fujian Nanwang
The main advantage of trading using opposite ROPEOK Technology and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ROPEOK Technology position performs unexpectedly, Fujian Nanwang 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 Fujian Nanwang will offset losses from the drop in Fujian Nanwang's long position.| ROPEOK Technology vs. Dezhan HealthCare Co | ROPEOK Technology vs. Sanbo Hospital Management | ROPEOK Technology vs. Healthcare Co | ROPEOK Technology vs. China Reform Health |
| Fujian Nanwang vs. Keeson Technology Corp | Fujian Nanwang vs. Dawning Information Industry | Fujian Nanwang vs. ROPEOK Technology Group | Fujian Nanwang vs. Maxvision Technology Corp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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