Correlation Between Kingfa Science and City Union
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By analyzing existing cross correlation between Kingfa Science Technology and City Union Bank, you can compare the effects of market volatilities on Kingfa Science and City Union 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 City Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and City Union.
Diversification Opportunities for Kingfa Science and City Union
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kingfa and City is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and City Union Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City Union Bank 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 City Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City Union Bank has no effect on the direction of Kingfa Science i.e., Kingfa Science and City Union go up and down completely randomly.
Pair Corralation between Kingfa Science and City Union
Assuming the 90 days trading horizon Kingfa Science Technology is expected to under-perform the City Union. In addition to that, Kingfa Science is 1.5 times more volatile than City Union Bank. It trades about -0.17 of its total potential returns per unit of risk. City Union Bank is currently generating about 0.07 per unit of volatility. If you would invest 16,715 in City Union Bank on August 24, 2024 and sell it today you would earn a total of 294.00 from holding City Union Bank or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kingfa Science Technology vs. City Union Bank
Performance |
| Timeline |
| Kingfa Science Technology |
| City Union Bank |
Kingfa Science and City Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and City Union
The main advantage of trading using opposite Kingfa Science and City Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, City Union 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 City Union will offset losses from the drop in City Union's long position.| Kingfa Science vs. Kamat Hotels Limited | Kingfa Science vs. MIRC Electronics Limited | Kingfa Science vs. TVS Electronics Limited | Kingfa Science vs. EMBASSY OFFICE PARKS |
| City Union vs. HT Media Limited | City Union vs. Apollo Sindoori Hotels | City Union vs. Advani Hotels Resorts | City Union vs. Chalet Hotels 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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