Correlation Between ROPEOK Technology and Kuang Chi
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By analyzing existing cross correlation between ROPEOK Technology Group and Kuang Chi Technologies, you can compare the effects of market volatilities on ROPEOK Technology and Kuang Chi 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 Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of ROPEOK Technology and Kuang Chi.
Diversification Opportunities for ROPEOK Technology and Kuang Chi
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ROPEOK and Kuang is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding ROPEOK Technology Group and Kuang Chi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuang Chi Technologies 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 Kuang Chi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuang Chi Technologies has no effect on the direction of ROPEOK Technology i.e., ROPEOK Technology and Kuang Chi go up and down completely randomly.
Pair Corralation between ROPEOK Technology and Kuang Chi
Assuming the 90 days trading horizon ROPEOK Technology Group is expected to under-perform the Kuang Chi. In addition to that, ROPEOK Technology is 1.24 times more volatile than Kuang Chi Technologies. It trades about -0.02 of its total potential returns per unit of risk. Kuang Chi Technologies is currently generating about 0.2 per unit of volatility. If you would invest 4,005 in Kuang Chi Technologies on September 26, 2024 and sell it today you would earn a total of 407.00 from holding Kuang Chi Technologies or generate 10.16% 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. Kuang Chi Technologies
Performance |
Timeline |
ROPEOK Technology |
Kuang Chi Technologies |
ROPEOK Technology and Kuang Chi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ROPEOK Technology and Kuang Chi
The main advantage of trading using opposite ROPEOK Technology and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ROPEOK Technology position performs unexpectedly, Kuang Chi 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 Kuang Chi will offset losses from the drop in Kuang Chi'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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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