Correlation Between ROPEOK Technology and Shanghai Shuixing
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By analyzing existing cross correlation between ROPEOK Technology Group and Shanghai Shuixing Home, you can compare the effects of market volatilities on ROPEOK Technology and Shanghai Shuixing 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 Shanghai Shuixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of ROPEOK Technology and Shanghai Shuixing.
Diversification Opportunities for ROPEOK Technology and Shanghai Shuixing
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ROPEOK and Shanghai is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding ROPEOK Technology Group and Shanghai Shuixing Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shuixing Home 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 Shanghai Shuixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shuixing Home has no effect on the direction of ROPEOK Technology i.e., ROPEOK Technology and Shanghai Shuixing go up and down completely randomly.
Pair Corralation between ROPEOK Technology and Shanghai Shuixing
Assuming the 90 days trading horizon ROPEOK Technology Group is expected to under-perform the Shanghai Shuixing. But the stock apears to be less risky and, when comparing its historical volatility, ROPEOK Technology Group is 1.06 times less risky than Shanghai Shuixing. The stock trades about -0.06 of its potential returns per unit of risk. The Shanghai Shuixing Home is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,660 in Shanghai Shuixing Home on September 27, 2024 and sell it today you would lose (11.00) from holding Shanghai Shuixing Home or give up 0.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ROPEOK Technology Group vs. Shanghai Shuixing Home
Performance |
| Timeline |
| ROPEOK Technology |
| Shanghai Shuixing Home |
ROPEOK Technology and Shanghai Shuixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ROPEOK Technology and Shanghai Shuixing
The main advantage of trading using opposite ROPEOK Technology and Shanghai Shuixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ROPEOK Technology position performs unexpectedly, Shanghai Shuixing 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 Shanghai Shuixing will offset losses from the drop in Shanghai Shuixing's long position.| ROPEOK Technology vs. Wintao Communications Co | ROPEOK Technology vs. Shenyang Chemical Industry | ROPEOK Technology vs. Quectel Wireless Solutions | ROPEOK Technology vs. Guangdong Shenglu Telecommunication |
| Shanghai Shuixing vs. Aerospace Hi Tech Holding | Shanghai Shuixing vs. Sinomach General Machinery | Shanghai Shuixing vs. Shantui Construction Machinery | Shanghai Shuixing vs. Zhejiang JIULI Hi tech |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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