Correlation Between Golden Tobacco and Kingfa Science
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By analyzing existing cross correlation between Golden Tobacco Limited and Kingfa Science Technology, you can compare the effects of market volatilities on Golden Tobacco 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 Golden Tobacco with a short position of Kingfa Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Tobacco and Kingfa Science.
Diversification Opportunities for Golden Tobacco and Kingfa Science
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Golden and Kingfa is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Golden Tobacco 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 Golden Tobacco 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 Golden Tobacco 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 Golden Tobacco i.e., Golden Tobacco and Kingfa Science go up and down completely randomly.
Pair Corralation between Golden Tobacco and Kingfa Science
Assuming the 90 days trading horizon Golden Tobacco Limited is expected to under-perform the Kingfa Science. But the stock apears to be less risky and, when comparing its historical volatility, Golden Tobacco Limited is 1.18 times less risky than Kingfa Science. The stock trades about -0.03 of its potential returns per unit of risk. The Kingfa Science Technology is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 132,175 in Kingfa Science Technology on September 4, 2024 and sell it today you would earn a total of 177,315 from holding Kingfa Science Technology or generate 134.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Tobacco Limited vs. Kingfa Science Technology
Performance |
| Timeline |
| Golden Tobacco |
| Kingfa Science Technology |
Golden Tobacco and Kingfa Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Tobacco and Kingfa Science
The main advantage of trading using opposite Golden Tobacco and Kingfa Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Tobacco 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.| Golden Tobacco vs. State Bank of | Golden Tobacco vs. Life Insurance | Golden Tobacco vs. HDFC Bank Limited | Golden Tobacco vs. ICICI Bank Limited |
| Kingfa Science vs. NMDC Limited | Kingfa Science vs. Steel Authority of | Kingfa Science vs. Embassy Office Parks | Kingfa Science vs. Gujarat Narmada Valley |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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