Correlation Between Kingfa Science and Federal Bank
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By analyzing existing cross correlation between Kingfa Science Technology and The Federal Bank, you can compare the effects of market volatilities on Kingfa Science and Federal Bank 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 Federal Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and Federal Bank.
Diversification Opportunities for Kingfa Science and Federal Bank
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kingfa and Federal is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and The Federal Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal 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 Federal Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Bank has no effect on the direction of Kingfa Science i.e., Kingfa Science and Federal Bank go up and down completely randomly.
Pair Corralation between Kingfa Science and Federal Bank
Assuming the 90 days trading horizon Kingfa Science Technology is expected to under-perform the Federal Bank. In addition to that, Kingfa Science is 1.42 times more volatile than The Federal Bank. It trades about -0.02 of its total potential returns per unit of risk. The Federal Bank is currently generating about 0.12 per unit of volatility. If you would invest 20,417 in The Federal Bank on September 2, 2024 and sell it today you would earn a total of 661.00 from holding The Federal Bank or generate 3.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingfa Science Technology vs. The Federal Bank
Performance |
| Timeline |
| Kingfa Science Technology |
| Federal Bank |
Kingfa Science and Federal Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and Federal Bank
The main advantage of trading using opposite Kingfa Science and Federal Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, Federal Bank 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 Federal Bank will offset losses from the drop in Federal Bank's long position.| Kingfa Science vs. Transport of | Kingfa Science vs. Par Drugs And | Kingfa Science vs. MEDI ASSIST HEALTHCARE | Kingfa Science vs. Mangalam Drugs And |
| Federal Bank vs. Foods Inns Limited | Federal Bank vs. Dev Information Technology | Federal Bank vs. Univa Foods Limited | Federal Bank vs. Mrs Bectors Food |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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