Correlation Between Iris Clothings and Kingfa Science
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By analyzing existing cross correlation between Iris Clothings Limited and Kingfa Science Technology, you can compare the effects of market volatilities on Iris Clothings 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 Iris Clothings with a short position of Kingfa Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iris Clothings and Kingfa Science.
Diversification Opportunities for Iris Clothings and Kingfa Science
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Iris and Kingfa is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Iris Clothings 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 Iris Clothings 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 Iris Clothings 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 Iris Clothings i.e., Iris Clothings and Kingfa Science go up and down completely randomly.
Pair Corralation between Iris Clothings and Kingfa Science
Assuming the 90 days trading horizon Iris Clothings is expected to generate 2.65 times less return on investment than Kingfa Science. In addition to that, Iris Clothings is 1.0 times more volatile than Kingfa Science Technology. It trades about 0.06 of its total potential returns per unit of risk. Kingfa Science Technology is currently generating about 0.16 per unit of volatility. If you would invest 300,555 in Kingfa Science Technology on September 12, 2024 and sell it today you would earn a total of 23,400 from holding Kingfa Science Technology or generate 7.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iris Clothings Limited vs. Kingfa Science Technology
Performance |
| Timeline |
| Iris Clothings |
| Kingfa Science Technology |
Iris Clothings and Kingfa Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iris Clothings and Kingfa Science
The main advantage of trading using opposite Iris Clothings and Kingfa Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iris Clothings 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.| Iris Clothings vs. Hemisphere Properties India | Iris Clothings vs. Indo Borax Chemicals | Iris Clothings vs. Kingfa Science Technology | Iris Clothings vs. Alkali Metals Limited |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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