Correlation Between ROPEOK Technology and Shanghai Yanpu
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By analyzing existing cross correlation between ROPEOK Technology Group and Shanghai Yanpu Metal, you can compare the effects of market volatilities on ROPEOK Technology and Shanghai Yanpu 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 Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of ROPEOK Technology and Shanghai Yanpu.
Diversification Opportunities for ROPEOK Technology and Shanghai Yanpu
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ROPEOK and Shanghai is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding ROPEOK Technology Group and Shanghai Yanpu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yanpu Metal 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 Yanpu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yanpu Metal has no effect on the direction of ROPEOK Technology i.e., ROPEOK Technology and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between ROPEOK Technology and Shanghai Yanpu
Assuming the 90 days trading horizon ROPEOK Technology is expected to generate 1.33 times less return on investment than Shanghai Yanpu. In addition to that, ROPEOK Technology is 1.4 times more volatile than Shanghai Yanpu Metal. It trades about 0.01 of its total potential returns per unit of risk. Shanghai Yanpu Metal is currently generating about 0.02 per unit of volatility. If you would invest 3,827 in Shanghai Yanpu Metal on September 3, 2024 and sell it today you would earn a total of 211.00 from holding Shanghai Yanpu Metal or generate 5.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ROPEOK Technology Group vs. Shanghai Yanpu Metal
Performance |
| Timeline |
| ROPEOK Technology |
| Shanghai Yanpu Metal |
ROPEOK Technology and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ROPEOK Technology and Shanghai Yanpu
The main advantage of trading using opposite ROPEOK Technology and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ROPEOK Technology position performs unexpectedly, Shanghai Yanpu 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 Yanpu will offset losses from the drop in Shanghai Yanpu's long position.| ROPEOK Technology vs. Agricultural Bank of | ROPEOK Technology vs. China Construction Bank | ROPEOK Technology vs. Postal Savings Bank | ROPEOK Technology vs. Bank of Communications |
| Shanghai Yanpu vs. PetroChina Co Ltd | Shanghai Yanpu vs. China Mobile Limited | Shanghai Yanpu vs. Industrial and Commercial | Shanghai Yanpu vs. China Life Insurance |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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