Correlation Between Kingfa Science and Banka BioLoo
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By analyzing existing cross correlation between Kingfa Science Technology and Banka BioLoo Limited, you can compare the effects of market volatilities on Kingfa Science and Banka BioLoo 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 Banka BioLoo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and Banka BioLoo.
Diversification Opportunities for Kingfa Science and Banka BioLoo
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kingfa and Banka is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and Banka BioLoo Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banka BioLoo 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 Banka BioLoo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banka BioLoo Limited has no effect on the direction of Kingfa Science i.e., Kingfa Science and Banka BioLoo go up and down completely randomly.
Pair Corralation between Kingfa Science and Banka BioLoo
Assuming the 90 days trading horizon Kingfa Science Technology is expected to generate 0.95 times more return on investment than Banka BioLoo. However, Kingfa Science Technology is 1.06 times less risky than Banka BioLoo. It trades about 0.09 of its potential returns per unit of risk. Banka BioLoo Limited is currently generating about 0.04 per unit of risk. If you would invest 113,942 in Kingfa Science Technology on September 13, 2024 and sell it today you would earn a total of 211,963 from holding Kingfa Science Technology or generate 186.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Kingfa Science Technology vs. Banka BioLoo Limited
Performance |
| Timeline |
| Kingfa Science Technology |
| Banka BioLoo Limited |
Kingfa Science and Banka BioLoo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and Banka BioLoo
The main advantage of trading using opposite Kingfa Science and Banka BioLoo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, Banka BioLoo 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 Banka BioLoo will offset losses from the drop in Banka BioLoo's long position.| Kingfa Science vs. NMDC Limited | Kingfa Science vs. Steel Authority of | Kingfa Science vs. Embassy Office Parks | Kingfa Science vs. Gujarat Narmada Valley |
| Banka BioLoo vs. Kingfa Science Technology | Banka BioLoo vs. Rico Auto Industries | Banka BioLoo vs. GACM Technologies Limited | Banka BioLoo vs. COSMO FIRST 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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