Correlation Between JGCHEMICALS and Kingfa Science
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By analyzing existing cross correlation between JGCHEMICALS LIMITED and Kingfa Science Technology, you can compare the effects of market volatilities on JGCHEMICALS 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 JGCHEMICALS with a short position of Kingfa Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of JGCHEMICALS and Kingfa Science.
Diversification Opportunities for JGCHEMICALS and Kingfa Science
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between JGCHEMICALS and Kingfa is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding JGCHEMICALS 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 JGCHEMICALS 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 JGCHEMICALS 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 JGCHEMICALS i.e., JGCHEMICALS and Kingfa Science go up and down completely randomly.
Pair Corralation between JGCHEMICALS and Kingfa Science
Assuming the 90 days trading horizon JGCHEMICALS LIMITED is expected to under-perform the Kingfa Science. But the stock apears to be less risky and, when comparing its historical volatility, JGCHEMICALS LIMITED is 1.62 times less risky than Kingfa Science. The stock trades about -0.25 of its potential returns per unit of risk. The Kingfa Science Technology is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 347,755 in Kingfa Science Technology on October 23, 2024 and sell it today you would lose (41,980) from holding Kingfa Science Technology or give up 12.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
JGCHEMICALS LIMITED vs. Kingfa Science Technology
Performance |
| Timeline |
| JGCHEMICALS LIMITED |
| Kingfa Science Technology |
JGCHEMICALS and Kingfa Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JGCHEMICALS and Kingfa Science
The main advantage of trading using opposite JGCHEMICALS and Kingfa Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JGCHEMICALS 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.| JGCHEMICALS vs. Hindustan Zinc Limited | JGCHEMICALS vs. MOIL Limited | JGCHEMICALS vs. The Orissa Minerals | JGCHEMICALS vs. 20 Microns 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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