Correlation Between Kingfa Science and Bosch
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By analyzing existing cross correlation between Kingfa Science Technology and Bosch Limited, you can compare the effects of market volatilities on Kingfa Science and Bosch 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 Bosch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and Bosch.
Diversification Opportunities for Kingfa Science and Bosch
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kingfa and Bosch is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and Bosch Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bosch 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 Bosch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bosch Limited has no effect on the direction of Kingfa Science i.e., Kingfa Science and Bosch go up and down completely randomly.
Pair Corralation between Kingfa Science and Bosch
Assuming the 90 days trading horizon Kingfa Science Technology is expected to under-perform the Bosch. In addition to that, Kingfa Science is 1.11 times more volatile than Bosch Limited. It trades about -0.15 of its total potential returns per unit of risk. Bosch Limited is currently generating about -0.12 per unit of volatility. If you would invest 3,641,655 in Bosch Limited on August 30, 2024 and sell it today you would lose (152,730) from holding Bosch Limited or give up 4.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Kingfa Science Technology vs. Bosch Limited
Performance |
| Timeline |
| Kingfa Science Technology |
| Bosch Limited |
Kingfa Science and Bosch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and Bosch
The main advantage of trading using opposite Kingfa Science and Bosch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, Bosch 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 Bosch will offset losses from the drop in Bosch's long position.| Kingfa Science vs. Steel Authority of | Kingfa Science vs. Embassy Office Parks | Kingfa Science vs. Indian Metals Ferro | Kingfa Science vs. JTL Industries |
| Bosch vs. Jubilant Foodworks Limited | Bosch vs. Life Insurance | Bosch vs. Bikaji Foods International | Bosch vs. Styrenix Performance Materials |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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