Correlation Between Kingfa Science and Barbeque Nation
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By analyzing existing cross correlation between Kingfa Science Technology and Barbeque Nation Hospitality, you can compare the effects of market volatilities on Kingfa Science and Barbeque Nation 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 Barbeque Nation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and Barbeque Nation.
Diversification Opportunities for Kingfa Science and Barbeque Nation
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kingfa and Barbeque is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and Barbeque Nation Hospitality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barbeque Nation Hosp 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 Barbeque Nation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barbeque Nation Hosp has no effect on the direction of Kingfa Science i.e., Kingfa Science and Barbeque Nation go up and down completely randomly.
Pair Corralation between Kingfa Science and Barbeque Nation
Assuming the 90 days trading horizon Kingfa Science Technology is expected to generate 2.15 times more return on investment than Barbeque Nation. However, Kingfa Science is 2.15 times more volatile than Barbeque Nation Hospitality. It trades about 0.1 of its potential returns per unit of risk. Barbeque Nation Hospitality is currently generating about -0.6 per unit of risk. If you would invest 315,395 in Kingfa Science Technology on October 17, 2024 and sell it today you would earn a total of 20,090 from holding Kingfa Science Technology or generate 6.37% 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. Barbeque Nation Hospitality
Performance |
| Timeline |
| Kingfa Science Technology |
| Barbeque Nation Hosp |
Kingfa Science and Barbeque Nation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and Barbeque Nation
The main advantage of trading using opposite Kingfa Science and Barbeque Nation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, Barbeque Nation 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 Barbeque Nation will offset losses from the drop in Barbeque Nation's long position.| Kingfa Science vs. Mrs Bectors Food | Kingfa Science vs. GPT Healthcare | Kingfa Science vs. Fortis Healthcare Limited | Kingfa Science vs. Max Healthcare Institute |
| Barbeque Nation vs. Aban Offshore Limited | Barbeque Nation vs. Future Retail Limited | Barbeque Nation vs. Welspun Investments and | Barbeque Nation vs. AUTHUM INVESTMENT INFRASTRUCTU |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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