Correlation Between Kingfa Science and GACM Technologies
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By analyzing existing cross correlation between Kingfa Science Technology and GACM Technologies Limited, you can compare the effects of market volatilities on Kingfa Science and GACM Technologies 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 GACM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and GACM Technologies.
Diversification Opportunities for Kingfa Science and GACM Technologies
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kingfa and GACM is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and GACM Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GACM Technologies 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 GACM Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GACM Technologies has no effect on the direction of Kingfa Science i.e., Kingfa Science and GACM Technologies go up and down completely randomly.
Pair Corralation between Kingfa Science and GACM Technologies
Assuming the 90 days trading horizon Kingfa Science Technology is expected to generate 0.55 times more return on investment than GACM Technologies. However, Kingfa Science Technology is 1.81 times less risky than GACM Technologies. It trades about -0.11 of its potential returns per unit of risk. GACM Technologies Limited is currently generating about -0.1 per unit of risk. If you would invest 299,645 in Kingfa Science Technology on August 27, 2024 and sell it today you would lose (13,525) from holding Kingfa Science Technology or give up 4.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingfa Science Technology vs. GACM Technologies Limited
Performance |
| Timeline |
| Kingfa Science Technology |
| GACM Technologies |
Kingfa Science and GACM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and GACM Technologies
The main advantage of trading using opposite Kingfa Science and GACM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, GACM Technologies 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 GACM Technologies will offset losses from the drop in GACM Technologies' long position.| Kingfa Science vs. Clean Science and | Kingfa Science vs. Speciality Restaurants Limited | Kingfa Science vs. Network18 Media Investments | Kingfa Science vs. Cholamandalam Investment and |
| GACM Technologies vs. Bajaj Holdings Investment | GACM Technologies vs. HDFC Asset Management | GACM Technologies vs. 360 ONE WAM | GACM Technologies vs. Aditya Birla Sun |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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