Correlation Between Kingfa Science and Blue Jet
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By analyzing existing cross correlation between Kingfa Science Technology and Blue Jet Healthcare, you can compare the effects of market volatilities on Kingfa Science and Blue Jet 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 Blue Jet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and Blue Jet.
Diversification Opportunities for Kingfa Science and Blue Jet
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kingfa and Blue is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and Blue Jet Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Jet Healthcare 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 Blue Jet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Jet Healthcare has no effect on the direction of Kingfa Science i.e., Kingfa Science and Blue Jet go up and down completely randomly.
Pair Corralation between Kingfa Science and Blue Jet
Assuming the 90 days trading horizon Kingfa Science Technology is expected to under-perform the Blue Jet. But the stock apears to be less risky and, when comparing its historical volatility, Kingfa Science Technology is 1.35 times less risky than Blue Jet. The stock trades about -0.17 of its potential returns per unit of risk. The Blue Jet Healthcare is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 50,800 in Blue Jet Healthcare on August 29, 2024 and sell it today you would earn a total of 1,775 from holding Blue Jet Healthcare or generate 3.49% 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. Blue Jet Healthcare
Performance |
| Timeline |
| Kingfa Science Technology |
| Blue Jet Healthcare |
Kingfa Science and Blue Jet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and Blue Jet
The main advantage of trading using opposite Kingfa Science and Blue Jet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, Blue Jet 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 Blue Jet will offset losses from the drop in Blue Jet's long position.The idea behind Kingfa Science Technology and Blue Jet Healthcare pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Blue Jet vs. India Glycols Limited | Blue Jet vs. Indo Borax Chemicals | Blue Jet vs. Kingfa Science Technology | Blue Jet vs. Alkali Metals 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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