Correlation Between ROPEOK Technology and Shandong Homey
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By analyzing existing cross correlation between ROPEOK Technology Group and Shandong Homey Aquatic, you can compare the effects of market volatilities on ROPEOK Technology and Shandong Homey 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 Shandong Homey. Check out your portfolio center. Please also check ongoing floating volatility patterns of ROPEOK Technology and Shandong Homey.
Diversification Opportunities for ROPEOK Technology and Shandong Homey
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ROPEOK and Shandong is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding ROPEOK Technology Group and Shandong Homey Aquatic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Homey Aquatic 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 Shandong Homey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Homey Aquatic has no effect on the direction of ROPEOK Technology i.e., ROPEOK Technology and Shandong Homey go up and down completely randomly.
Pair Corralation between ROPEOK Technology and Shandong Homey
Assuming the 90 days trading horizon ROPEOK Technology is expected to generate 5.29 times less return on investment than Shandong Homey. But when comparing it to its historical volatility, ROPEOK Technology Group is 1.78 times less risky than Shandong Homey. It trades about 0.04 of its potential returns per unit of risk. Shandong Homey Aquatic is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 200.00 in Shandong Homey Aquatic on August 28, 2024 and sell it today you would earn a total of 29.00 from holding Shandong Homey Aquatic or generate 14.5% 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. Shandong Homey Aquatic
Performance |
| Timeline |
| ROPEOK Technology |
| Shandong Homey Aquatic |
ROPEOK Technology and Shandong Homey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ROPEOK Technology and Shandong Homey
The main advantage of trading using opposite ROPEOK Technology and Shandong Homey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ROPEOK Technology position performs unexpectedly, Shandong Homey 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 Shandong Homey will offset losses from the drop in Shandong Homey's long position.| ROPEOK Technology vs. Guangzhou Boji Medical | ROPEOK Technology vs. Allmed Medical Products | ROPEOK Technology vs. Nanjing Putian Telecommunications | ROPEOK Technology vs. Eastern Communications Co |
| Shandong Homey vs. China Petroleum Chemical | Shandong Homey vs. PetroChina Co Ltd | Shandong Homey vs. China State Construction | Shandong Homey vs. China Railway 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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