Correlation Between Kingfa Science and Biofil Chemicals
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By analyzing existing cross correlation between Kingfa Science Technology and Biofil Chemicals Pharmaceuticals, you can compare the effects of market volatilities on Kingfa Science and Biofil Chemicals 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 Biofil Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and Biofil Chemicals.
Diversification Opportunities for Kingfa Science and Biofil Chemicals
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kingfa and Biofil is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and Biofil Chemicals Pharmaceutica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biofil Chemicals Pha 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 Biofil Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biofil Chemicals Pha has no effect on the direction of Kingfa Science i.e., Kingfa Science and Biofil Chemicals go up and down completely randomly.
Pair Corralation between Kingfa Science and Biofil Chemicals
Assuming the 90 days trading horizon Kingfa Science Technology is expected to generate 0.89 times more return on investment than Biofil Chemicals. However, Kingfa Science Technology is 1.12 times less risky than Biofil Chemicals. It trades about 0.06 of its potential returns per unit of risk. Biofil Chemicals Pharmaceuticals is currently generating about 0.04 per unit of risk. If you would invest 167,179 in Kingfa Science Technology on August 29, 2024 and sell it today you would earn a total of 122,386 from holding Kingfa Science Technology or generate 73.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingfa Science Technology vs. Biofil Chemicals Pharmaceutica
Performance |
| Timeline |
| Kingfa Science Technology |
| Biofil Chemicals Pha |
Kingfa Science and Biofil Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and Biofil Chemicals
The main advantage of trading using opposite Kingfa Science and Biofil Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, Biofil Chemicals 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 Biofil Chemicals will offset losses from the drop in Biofil Chemicals' long position.| Kingfa Science vs. Madhav Copper Limited | Kingfa Science vs. Aban Offshore Limited | Kingfa Science vs. Aarti Drugs Limited | Kingfa Science vs. Akums Drugs and |
| Biofil Chemicals vs. Kingfa Science Technology | Biofil Chemicals vs. Rico Auto Industries | Biofil Chemicals vs. GACM Technologies Limited | Biofil Chemicals 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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