Correlation Between Kingfa Science and Asian Hotels
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By analyzing existing cross correlation between Kingfa Science Technology and Asian Hotels Limited, you can compare the effects of market volatilities on Kingfa Science and Asian Hotels 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 Asian Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and Asian Hotels.
Diversification Opportunities for Kingfa Science and Asian Hotels
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kingfa and Asian is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and Asian Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asian Hotels 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 Asian Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asian Hotels Limited has no effect on the direction of Kingfa Science i.e., Kingfa Science and Asian Hotels go up and down completely randomly.
Pair Corralation between Kingfa Science and Asian Hotels
Assuming the 90 days trading horizon Kingfa Science Technology is expected to generate 1.24 times more return on investment than Asian Hotels. However, Kingfa Science is 1.24 times more volatile than Asian Hotels Limited. It trades about 0.1 of its potential returns per unit of risk. Asian Hotels Limited is currently generating about 0.1 per unit of risk. If you would invest 205,674 in Kingfa Science Technology on September 3, 2024 and sell it today you would earn a total of 105,536 from holding Kingfa Science Technology or generate 51.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingfa Science Technology vs. Asian Hotels Limited
Performance |
| Timeline |
| Kingfa Science Technology |
| Asian Hotels Limited |
Kingfa Science and Asian Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and Asian Hotels
The main advantage of trading using opposite Kingfa Science and Asian Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, Asian Hotels 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 Asian Hotels will offset losses from the drop in Asian Hotels' long position.| Kingfa Science vs. NMDC Limited | Kingfa Science vs. Steel Authority of | Kingfa Science vs. Embassy Office Parks | Kingfa Science vs. Indian Metals Ferro |
| Asian Hotels vs. Bajaj Holdings Investment | Asian Hotels vs. Shipping | Asian Hotels vs. Indo Borax Chemicals | Asian Hotels vs. Kingfa Science Technology |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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