Correlation Between Fedbank Financial and Kingfa Science
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fedbank Financial Services and Kingfa Science Technology, you can compare the effects of market volatilities on Fedbank Financial 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 Fedbank Financial with a short position of Kingfa Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fedbank Financial and Kingfa Science.
Diversification Opportunities for Fedbank Financial and Kingfa Science
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fedbank and Kingfa is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Fedbank Financial Services 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 Fedbank Financial 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 Fedbank Financial Services 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 Fedbank Financial i.e., Fedbank Financial and Kingfa Science go up and down completely randomly.
Pair Corralation between Fedbank Financial and Kingfa Science
Assuming the 90 days trading horizon Fedbank Financial Services is expected to under-perform the Kingfa Science. But the stock apears to be less risky and, when comparing its historical volatility, Fedbank Financial Services is 3.07 times less risky than Kingfa Science. The stock trades about -0.53 of its potential returns per unit of risk. The Kingfa Science Technology is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 317,455 in Kingfa Science Technology on October 14, 2024 and sell it today you would earn a total of 32,925 from holding Kingfa Science Technology or generate 10.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fedbank Financial Services vs. Kingfa Science Technology
Performance |
| Timeline |
| Fedbank Financial |
| Kingfa Science Technology |
Fedbank Financial and Kingfa Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fedbank Financial and Kingfa Science
The main advantage of trading using opposite Fedbank Financial and Kingfa Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fedbank Financial 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.| Fedbank Financial vs. Kingfa Science Technology | Fedbank Financial vs. Rico Auto Industries | Fedbank Financial vs. GACM Technologies Limited | Fedbank Financial vs. COSMO FIRST 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Global Correlations Find global opportunities by holding instruments from different markets |