Correlation Between AVALON TECHNOLOGIES and Kingfa Science
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By analyzing existing cross correlation between AVALON TECHNOLOGIES LTD and Kingfa Science Technology, you can compare the effects of market volatilities on AVALON TECHNOLOGIES and Kingfa Science 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 AVALON TECHNOLOGIES with a short position of Kingfa Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVALON TECHNOLOGIES and Kingfa Science.
Diversification Opportunities for AVALON TECHNOLOGIES and Kingfa Science
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AVALON and Kingfa is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding AVALON TECHNOLOGIES LTD and Kingfa Science Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingfa Science Technology and AVALON TECHNOLOGIES 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 AVALON TECHNOLOGIES LTD are associated (or correlated) with Kingfa Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingfa Science Technology has no effect on the direction of AVALON TECHNOLOGIES i.e., AVALON TECHNOLOGIES and Kingfa Science go up and down completely randomly.
Pair Corralation between AVALON TECHNOLOGIES and Kingfa Science
Assuming the 90 days trading horizon AVALON TECHNOLOGIES LTD is expected to generate 2.26 times more return on investment than Kingfa Science. However, AVALON TECHNOLOGIES is 2.26 times more volatile than Kingfa Science Technology. It trades about 0.26 of its potential returns per unit of risk. Kingfa Science Technology is currently generating about -0.18 per unit of risk. If you would invest 58,090 in AVALON TECHNOLOGIES LTD on August 30, 2024 and sell it today you would earn a total of 32,510 from holding AVALON TECHNOLOGIES LTD or generate 55.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVALON TECHNOLOGIES LTD vs. Kingfa Science Technology
Performance |
| Timeline |
| AVALON TECHNOLOGIES LTD |
| Kingfa Science Technology |
AVALON TECHNOLOGIES and Kingfa Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVALON TECHNOLOGIES and Kingfa Science
The main advantage of trading using opposite AVALON TECHNOLOGIES and Kingfa Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVALON TECHNOLOGIES position performs unexpectedly, Kingfa Science 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 Kingfa Science will offset losses from the drop in Kingfa Science's long position.| AVALON TECHNOLOGIES vs. Reliance Industries Limited | AVALON TECHNOLOGIES vs. Life Insurance | AVALON TECHNOLOGIES vs. India Glycols Limited | AVALON TECHNOLOGIES vs. Indo Borax Chemicals |
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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