Correlation Between ROPEOK Technology and Hoshine Silicon
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By analyzing existing cross correlation between ROPEOK Technology Group and Hoshine Silicon Ind, you can compare the effects of market volatilities on ROPEOK Technology and Hoshine Silicon 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 Hoshine Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of ROPEOK Technology and Hoshine Silicon.
Diversification Opportunities for ROPEOK Technology and Hoshine Silicon
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ROPEOK and Hoshine is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding ROPEOK Technology Group and Hoshine Silicon Ind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoshine Silicon Ind 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 Hoshine Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoshine Silicon Ind has no effect on the direction of ROPEOK Technology i.e., ROPEOK Technology and Hoshine Silicon go up and down completely randomly.
Pair Corralation between ROPEOK Technology and Hoshine Silicon
Assuming the 90 days trading horizon ROPEOK Technology Group is expected to generate 1.37 times more return on investment than Hoshine Silicon. However, ROPEOK Technology is 1.37 times more volatile than Hoshine Silicon Ind. It trades about 0.23 of its potential returns per unit of risk. Hoshine Silicon Ind is currently generating about 0.28 per unit of risk. If you would invest 917.00 in ROPEOK Technology Group on November 29, 2024 and sell it today you would earn a total of 90.00 from holding ROPEOK Technology Group or generate 9.81% 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. Hoshine Silicon Ind
Performance |
| Timeline |
| ROPEOK Technology |
| Hoshine Silicon Ind |
ROPEOK Technology and Hoshine Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ROPEOK Technology and Hoshine Silicon
The main advantage of trading using opposite ROPEOK Technology and Hoshine Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ROPEOK Technology position performs unexpectedly, Hoshine Silicon 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 Hoshine Silicon will offset losses from the drop in Hoshine Silicon's long position.| ROPEOK Technology vs. Huasi Agricultural Development | ROPEOK Technology vs. Baoding Dongli Machinery | ROPEOK Technology vs. Spring Airlines Co | ROPEOK Technology vs. Yindu Kitchen Equipment |
| Hoshine Silicon vs. Ping An Insurance | Hoshine Silicon vs. GRINM Semiconductor Materials | Hoshine Silicon vs. Hua Hong Semiconductor | Hoshine Silicon vs. AVIC Fund 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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