Correlation Between Kingfa Science and BF Investment
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By analyzing existing cross correlation between Kingfa Science Technology and BF Investment Limited, you can compare the effects of market volatilities on Kingfa Science and BF Investment 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 BF Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and BF Investment.
Diversification Opportunities for Kingfa Science and BF Investment
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kingfa and BFINVEST is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and BF Investment Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BF Investment 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 BF Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BF Investment Limited has no effect on the direction of Kingfa Science i.e., Kingfa Science and BF Investment go up and down completely randomly.
Pair Corralation between Kingfa Science and BF Investment
Assuming the 90 days trading horizon Kingfa Science Technology is expected to under-perform the BF Investment. But the stock apears to be less risky and, when comparing its historical volatility, Kingfa Science Technology is 1.41 times less risky than BF Investment. The stock trades about -0.07 of its potential returns per unit of risk. The BF Investment Limited is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 65,660 in BF Investment Limited on August 29, 2024 and sell it today you would earn a total of 6,340 from holding BF Investment Limited or generate 9.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingfa Science Technology vs. BF Investment Limited
Performance |
| Timeline |
| Kingfa Science Technology |
| BF Investment Limited |
Kingfa Science and BF Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and BF Investment
The main advantage of trading using opposite Kingfa Science and BF Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, BF Investment 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 BF Investment will offset losses from the drop in BF Investment's long position.| Kingfa Science vs. Steel Authority of | Kingfa Science vs. Embassy Office Parks | Kingfa Science vs. JTL Industries |
| BF Investment vs. MRF Limited | BF Investment vs. Nalwa Sons Investments | BF Investment vs. Kalyani Investment | BF Investment vs. Pilani Investment and |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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