Correlation Between BF Utilities and Kingfa Science
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By analyzing existing cross correlation between BF Utilities Limited and Kingfa Science Technology, you can compare the effects of market volatilities on BF Utilities 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 BF Utilities with a short position of Kingfa Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Utilities and Kingfa Science.
Diversification Opportunities for BF Utilities and Kingfa Science
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BFUTILITIE and Kingfa is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding BF Utilities Limited 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 BF Utilities 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 BF Utilities Limited 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 BF Utilities i.e., BF Utilities and Kingfa Science go up and down completely randomly.
Pair Corralation between BF Utilities and Kingfa Science
Assuming the 90 days trading horizon BF Utilities Limited is expected to under-perform the Kingfa Science. But the stock apears to be less risky and, when comparing its historical volatility, BF Utilities Limited is 1.07 times less risky than Kingfa Science. The stock trades about -0.1 of its potential returns per unit of risk. The Kingfa Science Technology is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 315,395 in Kingfa Science Technology on October 15, 2024 and sell it today you would earn a total of 34,985 from holding Kingfa Science Technology or generate 11.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BF Utilities Limited vs. Kingfa Science Technology
Performance |
| Timeline |
| BF Utilities Limited |
| Kingfa Science Technology |
BF Utilities and Kingfa Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Utilities and Kingfa Science
The main advantage of trading using opposite BF Utilities and Kingfa Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Utilities 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.| BF Utilities vs. ADF Foods Limited | BF Utilities vs. Samhi Hotels Limited | BF Utilities vs. Hindustan Foods Limited | BF Utilities vs. Viceroy Hotels Limited |
| Kingfa Science vs. TVS Electronics Limited | Kingfa Science vs. Shyam Telecom Limited | Kingfa Science vs. S P Apparels | Kingfa Science vs. BF Utilities Limited |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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