Correlation Between ROPEOK Technology and Zoy Home
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By analyzing existing cross correlation between ROPEOK Technology Group and Zoy Home Furnishing, you can compare the effects of market volatilities on ROPEOK Technology and Zoy Home 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 Zoy Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of ROPEOK Technology and Zoy Home.
Diversification Opportunities for ROPEOK Technology and Zoy Home
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ROPEOK and Zoy is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding ROPEOK Technology Group and Zoy Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoy Home Furnishing 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 Zoy Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoy Home Furnishing has no effect on the direction of ROPEOK Technology i.e., ROPEOK Technology and Zoy Home go up and down completely randomly.
Pair Corralation between ROPEOK Technology and Zoy Home
Assuming the 90 days trading horizon ROPEOK Technology is expected to generate 1.4 times less return on investment than Zoy Home. But when comparing it to its historical volatility, ROPEOK Technology Group is 1.01 times less risky than Zoy Home. It trades about 0.22 of its potential returns per unit of risk. Zoy Home Furnishing is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 999.00 in Zoy Home Furnishing on November 6, 2024 and sell it today you would earn a total of 135.00 from holding Zoy Home Furnishing or generate 13.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ROPEOK Technology Group vs. Zoy Home Furnishing
Performance |
| Timeline |
| ROPEOK Technology |
| Zoy Home Furnishing |
ROPEOK Technology and Zoy Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ROPEOK Technology and Zoy Home
The main advantage of trading using opposite ROPEOK Technology and Zoy Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ROPEOK Technology position performs unexpectedly, Zoy Home 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 Zoy Home will offset losses from the drop in Zoy Home's long position.| ROPEOK Technology vs. Ningbo Homelink Eco iTech | ROPEOK Technology vs. Ingenic Semiconductor | ROPEOK Technology vs. Zoy Home Furnishing | ROPEOK Technology vs. Hangzhou Arcvideo Technology |
| Zoy Home vs. HUAQIN TECHNOLOGY LTD | Zoy Home vs. Longmaster Information Tech | Zoy Home vs. Olympic Circuit Technology | Zoy Home vs. YLZ Information 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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