Correlation Between Kingfa Science and CCL Products
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By analyzing existing cross correlation between Kingfa Science Technology and CCL Products Limited, you can compare the effects of market volatilities on Kingfa Science and CCL Products 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 CCL Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and CCL Products.
Diversification Opportunities for Kingfa Science and CCL Products
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kingfa and CCL is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and CCL Products Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCL Products 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 CCL Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCL Products Limited has no effect on the direction of Kingfa Science i.e., Kingfa Science and CCL Products go up and down completely randomly.
Pair Corralation between Kingfa Science and CCL Products
Assuming the 90 days trading horizon Kingfa Science is expected to generate 1.72 times less return on investment than CCL Products. In addition to that, Kingfa Science is 1.29 times more volatile than CCL Products Limited. It trades about 0.16 of its total potential returns per unit of risk. CCL Products Limited is currently generating about 0.36 per unit of volatility. If you would invest 71,305 in CCL Products Limited on September 12, 2024 and sell it today you would earn a total of 10,310 from holding CCL Products Limited or generate 14.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingfa Science Technology vs. CCL Products Limited
Performance |
| Timeline |
| Kingfa Science Technology |
| CCL Products Limited |
Kingfa Science and CCL Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and CCL Products
The main advantage of trading using opposite Kingfa Science and CCL Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, CCL Products 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 CCL Products will offset losses from the drop in CCL Products' 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 |
| CCL Products vs. Indo Borax Chemicals | CCL Products vs. Kingfa Science Technology | CCL Products vs. Alkali Metals Limited | CCL Products vs. Krebs Biochemicals 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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