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
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kingfa and Elin is 0.65. 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 0.78 times more return on investment than Elin Electronics. However, Kingfa Science Technology is 1.28 times less risky than Elin Electronics. It trades about -0.09 of its potential returns per unit of risk. Elin Electronics Limited is currently generating about -0.43 per unit of risk. If you would invest 307,100 in Kingfa Science Technology on December 1, 2024 and sell it today you would lose (17,530) from holding Kingfa Science Technology or give up 5.71% 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. 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. Computer Age Management | Kingfa Science vs. Syrma SGS Technology | Kingfa Science vs. SIL Investments Limited | Kingfa Science vs. Tera Software Limited |
| Elin Electronics vs. Bodhi Tree Multimedia | Elin Electronics vs. TVS Electronics Limited | Elin Electronics vs. Ratnamani Metals Tubes | Elin Electronics vs. Imagicaaworld Entertainment 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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