Correlation Between ROPEOK Technology and Chongqing Department
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By analyzing existing cross correlation between ROPEOK Technology Group and Chongqing Department Store, you can compare the effects of market volatilities on ROPEOK Technology and Chongqing Department 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 Chongqing Department. Check out your portfolio center. Please also check ongoing floating volatility patterns of ROPEOK Technology and Chongqing Department.
Diversification Opportunities for ROPEOK Technology and Chongqing Department
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ROPEOK and Chongqing is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding ROPEOK Technology Group and Chongqing Department Store in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Department 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 Chongqing Department. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Department has no effect on the direction of ROPEOK Technology i.e., ROPEOK Technology and Chongqing Department go up and down completely randomly.
Pair Corralation between ROPEOK Technology and Chongqing Department
Assuming the 90 days trading horizon ROPEOK Technology is expected to generate 2.33 times less return on investment than Chongqing Department. But when comparing it to its historical volatility, ROPEOK Technology Group is 1.24 times less risky than Chongqing Department. It trades about 0.1 of its potential returns per unit of risk. Chongqing Department Store is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,864 in Chongqing Department Store on September 13, 2024 and sell it today you would earn a total of 374.00 from holding Chongqing Department Store or generate 13.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
ROPEOK Technology Group vs. Chongqing Department Store
Performance |
| Timeline |
| ROPEOK Technology |
| Chongqing Department |
ROPEOK Technology and Chongqing Department Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ROPEOK Technology and Chongqing Department
The main advantage of trading using opposite ROPEOK Technology and Chongqing Department positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ROPEOK Technology position performs unexpectedly, Chongqing Department 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 Chongqing Department will offset losses from the drop in Chongqing Department's long position.| ROPEOK Technology vs. Ming Yang Smart | ROPEOK Technology vs. 159681 | ROPEOK Technology vs. 159005 | ROPEOK Technology vs. Loctek Ergonomic Technology |
| Chongqing Department vs. Glodon Software Co | Chongqing Department vs. Tianjin Ruixin Technology | Chongqing Department vs. Uxi Unicomp Technology | Chongqing Department vs. ROPEOK Technology 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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