Correlation Between Kingfa Science and Chemcon Speciality
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kingfa Science Technology and Chemcon Speciality Chemicals, you can compare the effects of market volatilities on Kingfa Science and Chemcon Speciality 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 Chemcon Speciality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and Chemcon Speciality.
Diversification Opportunities for Kingfa Science and Chemcon Speciality
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kingfa and Chemcon is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and Chemcon Speciality Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chemcon Speciality 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 Chemcon Speciality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chemcon Speciality has no effect on the direction of Kingfa Science i.e., Kingfa Science and Chemcon Speciality go up and down completely randomly.
Pair Corralation between Kingfa Science and Chemcon Speciality
Assuming the 90 days trading horizon Kingfa Science Technology is expected to generate 1.56 times more return on investment than Chemcon Speciality. However, Kingfa Science is 1.56 times more volatile than Chemcon Speciality Chemicals. It trades about 0.06 of its potential returns per unit of risk. Chemcon Speciality Chemicals is currently generating about -0.01 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 | Strong |
| Accuracy | 99.23% |
| Values | Daily Returns |
Kingfa Science Technology vs. Chemcon Speciality Chemicals
Performance |
| Timeline |
| Kingfa Science Technology |
| Chemcon Speciality |
Kingfa Science and Chemcon Speciality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and Chemcon Speciality
The main advantage of trading using opposite Kingfa Science and Chemcon Speciality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, Chemcon Speciality 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 Chemcon Speciality will offset losses from the drop in Chemcon Speciality's 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 |
| Chemcon Speciality vs. NMDC Limited | Chemcon Speciality vs. Steel Authority of | Chemcon Speciality vs. Embassy Office Parks | Chemcon Speciality vs. Gujarat Alkalies 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |