Correlation Between Kingfa Science and Fino Payments
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By analyzing existing cross correlation between Kingfa Science Technology and Fino Payments Bank, you can compare the effects of market volatilities on Kingfa Science and Fino Payments 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 Fino Payments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and Fino Payments.
Diversification Opportunities for Kingfa Science and Fino Payments
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kingfa and Fino is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and Fino Payments Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fino Payments 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 Fino Payments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fino Payments Bank has no effect on the direction of Kingfa Science i.e., Kingfa Science and Fino Payments go up and down completely randomly.
Pair Corralation between Kingfa Science and Fino Payments
Assuming the 90 days trading horizon Kingfa Science Technology is expected to generate 0.81 times more return on investment than Fino Payments. However, Kingfa Science Technology is 1.23 times less risky than Fino Payments. It trades about -0.02 of its potential returns per unit of risk. Fino Payments Bank is currently generating about -0.04 per unit of risk. If you would invest 315,550 in Kingfa Science Technology on September 1, 2024 and sell it today you would lose (4,340) from holding Kingfa Science Technology or give up 1.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kingfa Science Technology vs. Fino Payments Bank
Performance |
| Timeline |
| Kingfa Science Technology |
| Fino Payments Bank |
Kingfa Science and Fino Payments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and Fino Payments
The main advantage of trading using opposite Kingfa Science and Fino Payments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, Fino Payments 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 Fino Payments will offset losses from the drop in Fino Payments' long position.| Kingfa Science vs. Kewal Kiran Clothing | Kingfa Science vs. Elin Electronics Limited | Kingfa Science vs. Vraj Iron and | Kingfa Science vs. Kalyani Steels Limited |
| Fino Payments vs. Rajnandini Metal Limited | Fino Payments vs. Pilani Investment and | Fino Payments vs. Coffee Day Enterprises | Fino Payments vs. KNR Constructions 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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