Correlation Between Kingfa Science and Entertainment Network
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By analyzing existing cross correlation between Kingfa Science Technology and Entertainment Network Limited, you can compare the effects of market volatilities on Kingfa Science and Entertainment Network 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 Entertainment Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and Entertainment Network.
Diversification Opportunities for Kingfa Science and Entertainment Network
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kingfa and Entertainment is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and Entertainment Network Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entertainment Network 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 Entertainment Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entertainment Network has no effect on the direction of Kingfa Science i.e., Kingfa Science and Entertainment Network go up and down completely randomly.
Pair Corralation between Kingfa Science and Entertainment Network
Assuming the 90 days trading horizon Kingfa Science Technology is expected to generate 0.92 times more return on investment than Entertainment Network. However, Kingfa Science Technology is 1.09 times less risky than Entertainment Network. It trades about 0.06 of its potential returns per unit of risk. Entertainment Network Limited is currently generating about 0.05 per unit of risk. If you would invest 191,809 in Kingfa Science Technology on August 31, 2024 and sell it today you would earn a total of 119,401 from holding Kingfa Science Technology or generate 62.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.46% |
| Values | Daily Returns |
Kingfa Science Technology vs. Entertainment Network Limited
Performance |
| Timeline |
| Kingfa Science Technology |
| Entertainment Network |
Kingfa Science and Entertainment Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and Entertainment Network
The main advantage of trading using opposite Kingfa Science and Entertainment Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, Entertainment Network 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 Entertainment Network will offset losses from the drop in Entertainment Network's long position.| Kingfa Science vs. EMBASSY OFFICE PARKS | Kingfa Science vs. Reliance Home Finance | Kingfa Science vs. Vertoz Advertising Limited | Kingfa Science vs. Shyam Metalics and |
| Entertainment Network vs. KIOCL Limited | Entertainment Network vs. Spentex Industries Limited | Entertainment Network vs. ITI Limited | Entertainment Network vs. Kingfa Science Technology |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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