Correlation Between Kingfa Science and Bandhan Bank
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By analyzing existing cross correlation between Kingfa Science Technology and Bandhan Bank Limited, you can compare the effects of market volatilities on Kingfa Science and Bandhan Bank 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 Bandhan Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and Bandhan Bank.
Diversification Opportunities for Kingfa Science and Bandhan Bank
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kingfa and Bandhan is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and Bandhan Bank Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bandhan Bank 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 Bandhan Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bandhan Bank Limited has no effect on the direction of Kingfa Science i.e., Kingfa Science and Bandhan Bank go up and down completely randomly.
Pair Corralation between Kingfa Science and Bandhan Bank
Assuming the 90 days trading horizon Kingfa Science Technology is expected to generate 1.28 times more return on investment than Bandhan Bank. However, Kingfa Science is 1.28 times more volatile than Bandhan Bank Limited. It trades about 0.12 of its potential returns per unit of risk. Bandhan Bank Limited is currently generating about -0.02 per unit of risk. If you would invest 193,808 in Kingfa Science Technology on September 3, 2024 and sell it today you would earn a total of 117,402 from holding Kingfa Science Technology or generate 60.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingfa Science Technology vs. Bandhan Bank Limited
Performance |
| Timeline |
| Kingfa Science Technology |
| Bandhan Bank Limited |
Kingfa Science and Bandhan Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and Bandhan Bank
The main advantage of trading using opposite Kingfa Science and Bandhan Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, Bandhan Bank 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 Bandhan Bank will offset losses from the drop in Bandhan Bank's long position.| Kingfa Science vs. NMDC Limited | Kingfa Science vs. Steel Authority of | Kingfa Science vs. Indian Metals Ferro | Kingfa Science vs. JTL Industries |
| Bandhan Bank vs. Reliance Industries Limited | Bandhan Bank vs. Shipping | Bandhan Bank vs. Indo Borax Chemicals | Bandhan Bank 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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