Correlation Between ROPEOK Technology and China State
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By analyzing existing cross correlation between ROPEOK Technology Group and China State Construction, you can compare the effects of market volatilities on ROPEOK Technology and China State 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 China State. Check out your portfolio center. Please also check ongoing floating volatility patterns of ROPEOK Technology and China State.
Diversification Opportunities for ROPEOK Technology and China State
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ROPEOK and China is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding ROPEOK Technology Group and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction 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 China State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of ROPEOK Technology i.e., ROPEOK Technology and China State go up and down completely randomly.
Pair Corralation between ROPEOK Technology and China State
Assuming the 90 days trading horizon ROPEOK Technology Group is expected to under-perform the China State. In addition to that, ROPEOK Technology is 2.27 times more volatile than China State Construction. It trades about 0.0 of its total potential returns per unit of risk. China State Construction is currently generating about 0.02 per unit of volatility. If you would invest 517.00 in China State Construction on October 28, 2024 and sell it today you would earn a total of 42.00 from holding China State Construction or generate 8.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ROPEOK Technology Group vs. China State Construction
Performance |
| Timeline |
| ROPEOK Technology |
| China State Construction |
ROPEOK Technology and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ROPEOK Technology and China State
The main advantage of trading using opposite ROPEOK Technology and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ROPEOK Technology position performs unexpectedly, China State 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 China State will offset losses from the drop in China State's long position.| ROPEOK Technology vs. China State Construction | ROPEOK Technology vs. Poly Real Estate | ROPEOK Technology vs. China Vanke Co | ROPEOK Technology vs. China Merchants Shekou |
| China State vs. Soochow Suzhou Industrial | China State vs. China Asset Management | China State vs. Xinjiang Baodi Mining | China State vs. JCHX Mining Management |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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