Correlation Between GTL and Kingfa Science
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By analyzing existing cross correlation between GTL Limited and Kingfa Science Technology, you can compare the effects of market volatilities on GTL 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 GTL with a short position of Kingfa Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of GTL and Kingfa Science.
Diversification Opportunities for GTL and Kingfa Science
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GTL and Kingfa is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding GTL 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 GTL 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 GTL 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 GTL i.e., GTL and Kingfa Science go up and down completely randomly.
Pair Corralation between GTL and Kingfa Science
Assuming the 90 days trading horizon GTL is expected to generate 1.28 times less return on investment than Kingfa Science. In addition to that, GTL is 1.46 times more volatile than Kingfa Science Technology. It trades about 0.04 of its total potential returns per unit of risk. Kingfa Science Technology is currently generating about 0.07 per unit of volatility. If you would invest 126,716 in Kingfa Science Technology on August 30, 2024 and sell it today you would earn a total of 161,069 from holding Kingfa Science Technology or generate 127.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
GTL Limited vs. Kingfa Science Technology
Performance |
| Timeline |
| GTL Limited |
| Kingfa Science Technology |
GTL and Kingfa Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GTL and Kingfa Science
The main advantage of trading using opposite GTL and Kingfa Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GTL 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.| GTL vs. SINCLAIRS HOTELS ORD | GTL vs. Usha Martin Education | GTL vs. Global Education Limited | GTL vs. G Tec Jainx Education |
| Kingfa Science vs. Steel Authority of | Kingfa Science vs. Embassy Office Parks | Kingfa Science vs. Indian Metals Ferro | Kingfa Science vs. JTL Industries |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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