Correlation Between Kap Industrial and NewFunds Shariah
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By analyzing existing cross correlation between Kap Industrial Holdings and NewFunds Shariah Top, you can compare the effects of market volatilities on Kap Industrial and NewFunds Shariah 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 Kap Industrial with a short position of NewFunds Shariah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kap Industrial and NewFunds Shariah.
Diversification Opportunities for Kap Industrial and NewFunds Shariah
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kap and NewFunds is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Kap Industrial Holdings and NewFunds Shariah Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewFunds Shariah Top and Kap Industrial 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 Kap Industrial Holdings are associated (or correlated) with NewFunds Shariah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewFunds Shariah Top has no effect on the direction of Kap Industrial i.e., Kap Industrial and NewFunds Shariah go up and down completely randomly.
Pair Corralation between Kap Industrial and NewFunds Shariah
Assuming the 90 days trading horizon Kap Industrial Holdings is expected to under-perform the NewFunds Shariah. In addition to that, Kap Industrial is 2.29 times more volatile than NewFunds Shariah Top. It trades about -0.05 of its total potential returns per unit of risk. NewFunds Shariah Top is currently generating about 0.45 per unit of volatility. If you would invest 34,200 in NewFunds Shariah Top on October 22, 2024 and sell it today you would earn a total of 2,900 from holding NewFunds Shariah Top or generate 8.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kap Industrial Holdings vs. NewFunds Shariah Top
Performance |
| Timeline |
| Kap Industrial Holdings |
| NewFunds Shariah Top |
Kap Industrial and NewFunds Shariah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kap Industrial and NewFunds Shariah
The main advantage of trading using opposite Kap Industrial and NewFunds Shariah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kap Industrial position performs unexpectedly, NewFunds Shariah 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 NewFunds Shariah will offset losses from the drop in NewFunds Shariah's long position.| Kap Industrial vs. ABSA Bank Limited | Kap Industrial vs. We Buy Cars | Kap Industrial vs. Life Healthcare | Kap Industrial vs. Bytes Technology |
| NewFunds Shariah vs. NewFunds GOVI Exchange | NewFunds Shariah vs. NewFunds Low Volatility | NewFunds Shariah vs. NewFunds MAPPS Growth | NewFunds Shariah vs. NewFunds TRACI 3 |
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.
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