Correlation Between Kingfa Science and Elin Electronics
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By analyzing existing cross correlation between Kingfa Science Technology and Elin Electronics Limited, you can compare the effects of market volatilities on Kingfa Science and Elin Electronics 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 Elin Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and Elin Electronics.
Diversification Opportunities for Kingfa Science and Elin Electronics
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kingfa and Elin is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and Elin Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elin Electronics 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 Elin Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elin Electronics has no effect on the direction of Kingfa Science i.e., Kingfa Science and Elin Electronics go up and down completely randomly.
Pair Corralation between Kingfa Science and Elin Electronics
Assuming the 90 days trading horizon Kingfa Science Technology is expected to generate 1.21 times more return on investment than Elin Electronics. However, Kingfa Science is 1.21 times more volatile than Elin Electronics Limited. It trades about 0.03 of its potential returns per unit of risk. Elin Electronics Limited is currently generating about -0.16 per unit of risk. If you would invest 293,965 in Kingfa Science Technology on October 26, 2024 and sell it today you would earn a total of 5,520 from holding Kingfa Science Technology or generate 1.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Kingfa Science Technology vs. Elin Electronics Limited
Performance |
Timeline |
Kingfa Science Technology |
Elin Electronics |
Kingfa Science and Elin Electronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kingfa Science and Elin Electronics
The main advantage of trading using opposite Kingfa Science and Elin Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, Elin Electronics 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 Elin Electronics will offset losses from the drop in Elin Electronics' long position.Kingfa Science vs. The State Trading | Kingfa Science vs. Rainbow Childrens Medicare | Kingfa Science vs. Nalwa Sons Investments | Kingfa Science vs. AUTHUM INVESTMENT INFRASTRUCTU |
Elin Electronics vs. Kingfa Science Technology | Elin Electronics vs. Rico Auto Industries | Elin Electronics vs. GACM Technologies Limited | Elin Electronics vs. COSMO FIRST 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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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