Correlation Between Kingfa Science and Ausom Enterprise
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By analyzing existing cross correlation between Kingfa Science Technology and Ausom Enterprise Limited, you can compare the effects of market volatilities on Kingfa Science and Ausom Enterprise 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 Ausom Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and Ausom Enterprise.
Diversification Opportunities for Kingfa Science and Ausom Enterprise
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kingfa and Ausom is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and Ausom Enterprise Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ausom Enterprise 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 Ausom Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ausom Enterprise has no effect on the direction of Kingfa Science i.e., Kingfa Science and Ausom Enterprise go up and down completely randomly.
Pair Corralation between Kingfa Science and Ausom Enterprise
Assuming the 90 days trading horizon Kingfa Science Technology is expected to generate 0.76 times more return on investment than Ausom Enterprise. However, Kingfa Science Technology is 1.32 times less risky than Ausom Enterprise. It trades about 0.08 of its potential returns per unit of risk. Ausom Enterprise Limited is currently generating about 0.04 per unit of risk. If you would invest 129,493 in Kingfa Science Technology on September 3, 2024 and sell it today you would earn a total of 181,717 from holding Kingfa Science Technology or generate 140.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.39% |
| Values | Daily Returns |
Kingfa Science Technology vs. Ausom Enterprise Limited
Performance |
| Timeline |
| Kingfa Science Technology |
| Ausom Enterprise |
Kingfa Science and Ausom Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and Ausom Enterprise
The main advantage of trading using opposite Kingfa Science and Ausom Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, Ausom Enterprise 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 Ausom Enterprise will offset losses from the drop in Ausom Enterprise's 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 |
| Ausom Enterprise vs. Megastar Foods Limited | Ausom Enterprise vs. FCS Software Solutions | Ausom Enterprise vs. Kohinoor Foods Limited | Ausom Enterprise vs. Selan Exploration 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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