Correlation Between Kingfa Science and Cyient
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By analyzing existing cross correlation between Kingfa Science Technology and Cyient Limited, you can compare the effects of market volatilities on Kingfa Science and Cyient 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 Cyient. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and Cyient.
Diversification Opportunities for Kingfa Science and Cyient
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kingfa and Cyient is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and Cyient Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyient 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 Cyient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyient Limited has no effect on the direction of Kingfa Science i.e., Kingfa Science and Cyient go up and down completely randomly.
Pair Corralation between Kingfa Science and Cyient
Assuming the 90 days trading horizon Kingfa Science is expected to generate 1.55 times less return on investment than Cyient. In addition to that, Kingfa Science is 1.67 times more volatile than Cyient Limited. It trades about 0.22 of its total potential returns per unit of risk. Cyient Limited is currently generating about 0.57 per unit of volatility. If you would invest 179,600 in Cyient Limited on September 14, 2024 and sell it today you would earn a total of 29,365 from holding Cyient Limited or generate 16.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Kingfa Science Technology vs. Cyient Limited
Performance |
| Timeline |
| Kingfa Science Technology |
| Cyient Limited |
Kingfa Science and Cyient Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and Cyient
The main advantage of trading using opposite Kingfa Science and Cyient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, Cyient 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 Cyient will offset losses from the drop in Cyient's long position.| Kingfa Science vs. NMDC Limited | Kingfa Science vs. Steel Authority of | Kingfa Science vs. Embassy Office Parks | Kingfa Science vs. Gujarat Narmada Valley |
| Cyient vs. Yes Bank Limited | Cyient vs. Kingfa Science Technology | Cyient vs. Rico Auto Industries | Cyient vs. GACM Technologies 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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