Correlation Between Centum Electronics and Kingfa Science
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By analyzing existing cross correlation between Centum Electronics Limited and Kingfa Science Technology, you can compare the effects of market volatilities on Centum Electronics 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 Centum Electronics with a short position of Kingfa Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centum Electronics and Kingfa Science.
Diversification Opportunities for Centum Electronics and Kingfa Science
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Centum and Kingfa is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Centum Electronics 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 Centum Electronics 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 Centum Electronics 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 Centum Electronics i.e., Centum Electronics and Kingfa Science go up and down completely randomly.
Pair Corralation between Centum Electronics and Kingfa Science
Assuming the 90 days trading horizon Centum Electronics Limited is expected to under-perform the Kingfa Science. But the stock apears to be less risky and, when comparing its historical volatility, Centum Electronics Limited is 1.38 times less risky than Kingfa Science. The stock trades about -0.02 of its potential returns per unit of risk. The Kingfa Science Technology is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 190,467 in Kingfa Science Technology on September 1, 2024 and sell it today you would earn a total of 120,743 from holding Kingfa Science Technology or generate 63.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centum Electronics Limited vs. Kingfa Science Technology
Performance |
| Timeline |
| Centum Electronics |
| Kingfa Science Technology |
Centum Electronics and Kingfa Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centum Electronics and Kingfa Science
The main advantage of trading using opposite Centum Electronics and Kingfa Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centum Electronics 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.| Centum Electronics vs. The Orissa Minerals | Centum Electronics vs. Malu Paper Mills | Centum Electronics vs. Kingfa Science Technology | Centum Electronics vs. Rico Auto Industries |
| Kingfa Science vs. Kewal Kiran Clothing | Kingfa Science vs. Elin Electronics Limited | Kingfa Science vs. Vraj Iron and | Kingfa Science vs. Kalyani Steels 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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