Correlation Between Kingfa Science and ADF Foods
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By analyzing existing cross correlation between Kingfa Science Technology and ADF Foods Limited, you can compare the effects of market volatilities on Kingfa Science and ADF Foods 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 ADF Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and ADF Foods.
Diversification Opportunities for Kingfa Science and ADF Foods
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kingfa and ADF is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and ADF Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADF Foods 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 ADF Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADF Foods Limited has no effect on the direction of Kingfa Science i.e., Kingfa Science and ADF Foods go up and down completely randomly.
Pair Corralation between Kingfa Science and ADF Foods
Assuming the 90 days trading horizon Kingfa Science Technology is expected to generate 1.17 times more return on investment than ADF Foods. However, Kingfa Science is 1.17 times more volatile than ADF Foods Limited. It trades about 0.03 of its potential returns per unit of risk. ADF Foods Limited is currently generating about -0.07 per unit of risk. If you would invest 293,965 in Kingfa Science Technology on October 26, 2024 and sell it today you would earn a total of 5,520 from holding Kingfa Science Technology or generate 1.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingfa Science Technology vs. ADF Foods Limited
Performance |
| Timeline |
| Kingfa Science Technology |
| ADF Foods Limited |
Kingfa Science and ADF Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and ADF Foods
The main advantage of trading using opposite Kingfa Science and ADF Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, ADF Foods 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 ADF Foods will offset losses from the drop in ADF Foods' long position.| Kingfa Science vs. The State Trading | Kingfa Science vs. Rainbow Childrens Medicare | Kingfa Science vs. Nalwa Sons Investments | Kingfa Science vs. AUTHUM INVESTMENT INFRASTRUCTU |
| ADF Foods vs. Gangotri Textiles Limited | ADF Foods vs. Hemisphere Properties India | ADF Foods vs. Kingfa Science Technology | ADF Foods vs. Rico Auto 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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