Correlation Between Kingfa Science and 3M India
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By analyzing existing cross correlation between Kingfa Science Technology and 3M India Limited, you can compare the effects of market volatilities on Kingfa Science and 3M India 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 Kingfa Science with a short position of 3M India. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and 3M India.
Diversification Opportunities for Kingfa Science and 3M India
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kingfa and 3MINDIA is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and 3M India Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3M India Limited and Kingfa Science 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 Kingfa Science Technology are associated (or correlated) with 3M India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3M India Limited has no effect on the direction of Kingfa Science i.e., Kingfa Science and 3M India go up and down completely randomly.
Pair Corralation between Kingfa Science and 3M India
Assuming the 90 days trading horizon Kingfa Science Technology is expected to under-perform the 3M India. But the stock apears to be less risky and, when comparing its historical volatility, Kingfa Science Technology is 1.14 times less risky than 3M India. The stock trades about -0.15 of its potential returns per unit of risk. The 3M India Limited is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 3,352,100 in 3M India Limited on August 30, 2024 and sell it today you would lose (177,770) from holding 3M India Limited or give up 5.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kingfa Science Technology vs. 3M India Limited
Performance |
| Timeline |
| Kingfa Science Technology |
| 3M India Limited |
Kingfa Science and 3M India Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and 3M India
The main advantage of trading using opposite Kingfa Science and 3M India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, 3M India 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 3M India will offset losses from the drop in 3M India's long position.| Kingfa Science vs. Steel Authority of | Kingfa Science vs. Embassy Office Parks | Kingfa Science vs. Indian Metals Ferro | Kingfa Science vs. JTL Industries |
| 3M India vs. Welspun Investments and | 3M India vs. Industrial Investment Trust | 3M India vs. Mangalore Chemicals Fertilizers | 3M India vs. Dharani SugarsChemicals Limited |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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