Correlation Between ROPEOK Technology and Lingyuan Iron
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By analyzing existing cross correlation between ROPEOK Technology Group and Lingyuan Iron Steel, you can compare the effects of market volatilities on ROPEOK Technology and Lingyuan Iron 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 Lingyuan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of ROPEOK Technology and Lingyuan Iron.
Diversification Opportunities for ROPEOK Technology and Lingyuan Iron
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ROPEOK and Lingyuan is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding ROPEOK Technology Group and Lingyuan Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lingyuan Iron Steel 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 Lingyuan Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lingyuan Iron Steel has no effect on the direction of ROPEOK Technology i.e., ROPEOK Technology and Lingyuan Iron go up and down completely randomly.
Pair Corralation between ROPEOK Technology and Lingyuan Iron
Assuming the 90 days trading horizon ROPEOK Technology Group is expected to generate 1.83 times more return on investment than Lingyuan Iron. However, ROPEOK Technology is 1.83 times more volatile than Lingyuan Iron Steel. It trades about -0.27 of its potential returns per unit of risk. Lingyuan Iron Steel is currently generating about -0.62 per unit of risk. If you would invest 987.00 in ROPEOK Technology Group on October 15, 2024 and sell it today you would lose (188.00) from holding ROPEOK Technology Group or give up 19.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ROPEOK Technology Group vs. Lingyuan Iron Steel
Performance |
| Timeline |
| ROPEOK Technology |
| Lingyuan Iron Steel |
ROPEOK Technology and Lingyuan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ROPEOK Technology and Lingyuan Iron
The main advantage of trading using opposite ROPEOK Technology and Lingyuan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ROPEOK Technology position performs unexpectedly, Lingyuan Iron 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 Lingyuan Iron will offset losses from the drop in Lingyuan Iron'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 |
| Lingyuan Iron vs. Iat Automobile Technology | Lingyuan Iron vs. ROPEOK Technology Group | Lingyuan Iron vs. Guangdong Xiongsu Technology | Lingyuan Iron vs. Hubeiyichang Transportation 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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