Correlation Between BANKBETF and Kingfa Science
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By analyzing existing cross correlation between BANKBETF and Kingfa Science Technology, you can compare the effects of market volatilities on BANKBETF 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 BANKBETF with a short position of Kingfa Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANKBETF and Kingfa Science.
Diversification Opportunities for BANKBETF and Kingfa Science
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BANKBETF and Kingfa is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding BANKBETF 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 BANKBETF 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 BANKBETF 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 BANKBETF i.e., BANKBETF and Kingfa Science go up and down completely randomly.
Pair Corralation between BANKBETF and Kingfa Science
Assuming the 90 days trading horizon BANKBETF is expected to generate 2.65 times less return on investment than Kingfa Science. But when comparing it to its historical volatility, BANKBETF is 1.92 times less risky than Kingfa Science. It trades about 0.06 of its potential returns per unit of risk. Kingfa Science Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 129,493 in Kingfa Science Technology on September 3, 2024 and sell it today you would earn a total of 181,717 from holding Kingfa Science Technology or generate 140.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 43.56% |
| Values | Daily Returns |
BANKBETF vs. Kingfa Science Technology
Performance |
| Timeline |
| BANKBETF |
| Kingfa Science Technology |
BANKBETF and Kingfa Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANKBETF and Kingfa Science
The main advantage of trading using opposite BANKBETF and Kingfa Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANKBETF 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.| BANKBETF vs. NIFTYETF | BANKBETF vs. ITETF | BANKBETF vs. ICICI Prudential Nifty | BANKBETF vs. Nippon India Mutual |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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