Correlation Between Kingfa Science and Cambridge Technology
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By analyzing existing cross correlation between Kingfa Science Technology and Cambridge Technology Enterprises, you can compare the effects of market volatilities on Kingfa Science and Cambridge Technology 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 Cambridge Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and Cambridge Technology.
Diversification Opportunities for Kingfa Science and Cambridge Technology
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kingfa and Cambridge is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and Cambridge Technology Enterpris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambridge Technology 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 Cambridge Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambridge Technology has no effect on the direction of Kingfa Science i.e., Kingfa Science and Cambridge Technology go up and down completely randomly.
Pair Corralation between Kingfa Science and Cambridge Technology
Assuming the 90 days trading horizon Kingfa Science Technology is expected to generate 1.06 times more return on investment than Cambridge Technology. However, Kingfa Science is 1.06 times more volatile than Cambridge Technology Enterprises. It trades about -0.15 of its potential returns per unit of risk. Cambridge Technology Enterprises is currently generating about -0.28 per unit of risk. If you would invest 339,915 in Kingfa Science Technology on October 29, 2024 and sell it today you would lose (41,465) from holding Kingfa Science Technology or give up 12.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingfa Science Technology vs. Cambridge Technology Enterpris
Performance |
| Timeline |
| Kingfa Science Technology |
| Cambridge Technology |
Kingfa Science and Cambridge Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and Cambridge Technology
The main advantage of trading using opposite Kingfa Science and Cambridge Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, Cambridge Technology 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 Cambridge Technology will offset losses from the drop in Cambridge Technology's long position.| Kingfa Science vs. Tamilnadu Telecommunication Limited | Kingfa Science vs. Industrial Investment Trust | Kingfa Science vs. Gallantt Ispat Limited | Kingfa Science vs. Ankit Metal Power |
| Cambridge Technology vs. Nucleus Software Exports | Cambridge Technology vs. Hathway Cable Datacom | Cambridge Technology vs. Hindustan Construction | Cambridge Technology vs. Indraprastha Medical |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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