Correlation Between ROPEOK Technology and Qi An

Can any of the company-specific risk be diversified away by investing in both ROPEOK Technology and Qi An at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ROPEOK Technology and Qi An into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ROPEOK Technology Group and Qi An Xin, you can compare the effects of market volatilities on ROPEOK Technology and Qi An 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 Qi An. Check out your portfolio center. Please also check ongoing floating volatility patterns of ROPEOK Technology and Qi An.

Diversification Opportunities for ROPEOK Technology and Qi An

0.32

Correlation Coefficient

ROPEOK Technology  Qi An

Weak diversification

The 3 months correlation between ROPEOK and 688561 is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding ROPEOK Technology Group and Qi An Xin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qi An Xin 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 Qi An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qi An Xin has no effect on the direction of ROPEOK Technology i.e., ROPEOK Technology and Qi An go up and down completely randomly.

Pair Corralation between ROPEOK Technology and Qi An

Assuming the 90 days trading horizon ROPEOK Technology Group is expected to generate 1.09 times more return on investment than Qi An. However, ROPEOK Technology is 1.09 times more volatile than Qi An Xin. It trades about -0.04 of its potential returns per unit of risk. Qi An Xin is currently generating about -0.2 per unit of risk. If you would invest  927.00  in ROPEOK Technology Group on October 6, 2024 and sell it today you would lose (110.00) from holding ROPEOK Technology Group or give up 11.87% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

ROPEOK Technology Group  vs.  Qi An Xin

ROPEOK Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ROPEOK Technology Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Qi An Xin

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Qi An Xin has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with ROPEOK Technology and Qi An

The main advantage of trading using opposite ROPEOK Technology and Qi An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ROPEOK Technology position performs unexpectedly, Qi An 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 Qi An will offset losses from the drop in Qi An's long position.

The idea behind ROPEOK Technology Group and Qi An Xin pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.