Correlation Between ROPEOK Technology and Shaanxi Construction
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By analyzing existing cross correlation between ROPEOK Technology Group and Shaanxi Construction Machinery, you can compare the effects of market volatilities on ROPEOK Technology and Shaanxi Construction 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 Shaanxi Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of ROPEOK Technology and Shaanxi Construction.
Diversification Opportunities for ROPEOK Technology and Shaanxi Construction
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ROPEOK and Shaanxi is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding ROPEOK Technology Group and Shaanxi Construction Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Construction 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 Shaanxi Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Construction has no effect on the direction of ROPEOK Technology i.e., ROPEOK Technology and Shaanxi Construction go up and down completely randomly.
Pair Corralation between ROPEOK Technology and Shaanxi Construction
Assuming the 90 days trading horizon ROPEOK Technology Group is expected to under-perform the Shaanxi Construction. But the stock apears to be less risky and, when comparing its historical volatility, ROPEOK Technology Group is 1.4 times less risky than Shaanxi Construction. The stock trades about -0.02 of its potential returns per unit of risk. The Shaanxi Construction Machinery is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 338.00 in Shaanxi Construction Machinery on September 26, 2024 and sell it today you would earn a total of 8.00 from holding Shaanxi Construction Machinery or generate 2.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
ROPEOK Technology Group vs. Shaanxi Construction Machinery
Performance |
Timeline |
ROPEOK Technology |
Shaanxi Construction |
ROPEOK Technology and Shaanxi Construction Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ROPEOK Technology and Shaanxi Construction
The main advantage of trading using opposite ROPEOK Technology and Shaanxi Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ROPEOK Technology position performs unexpectedly, Shaanxi Construction 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 Shaanxi Construction will offset losses from the drop in Shaanxi Construction's long position.ROPEOK Technology vs. BeiGene | ROPEOK Technology vs. Kweichow Moutai Co | ROPEOK Technology vs. Beijing Roborock Technology | ROPEOK Technology vs. G bits Network Technology |
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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 Stocks Directory module to find actively traded stocks across global markets.
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