Correlation Between Wintao Communications and ROPEOK Technology
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By analyzing existing cross correlation between Wintao Communications Co and ROPEOK Technology Group, you can compare the effects of market volatilities on Wintao Communications and ROPEOK Technology 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 Wintao Communications with a short position of ROPEOK Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintao Communications and ROPEOK Technology.
Diversification Opportunities for Wintao Communications and ROPEOK Technology
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wintao and ROPEOK is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Wintao Communications Co and ROPEOK Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ROPEOK Technology and Wintao Communications 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 Wintao Communications Co are associated (or correlated) with ROPEOK Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ROPEOK Technology has no effect on the direction of Wintao Communications i.e., Wintao Communications and ROPEOK Technology go up and down completely randomly.
Pair Corralation between Wintao Communications and ROPEOK Technology
Assuming the 90 days trading horizon Wintao Communications Co is expected to under-perform the ROPEOK Technology. But the stock apears to be less risky and, when comparing its historical volatility, Wintao Communications Co is 1.1 times less risky than ROPEOK Technology. The stock trades about -0.02 of its potential returns per unit of risk. The ROPEOK Technology Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 773.00 in ROPEOK Technology Group on October 11, 2024 and sell it today you would earn a total of 43.00 from holding ROPEOK Technology Group or generate 5.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Wintao Communications Co vs. ROPEOK Technology Group
Performance |
Timeline |
Wintao Communications |
ROPEOK Technology |
Wintao Communications and ROPEOK Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Wintao Communications and ROPEOK Technology
The main advantage of trading using opposite Wintao Communications and ROPEOK Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintao Communications position performs unexpectedly, ROPEOK Technology 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 ROPEOK Technology will offset losses from the drop in ROPEOK Technology's long position.Wintao Communications vs. Humanwell Healthcare Group | ||
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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