Correlation Between Kingfa Science and GM Breweries
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By analyzing existing cross correlation between Kingfa Science Technology and GM Breweries Limited, you can compare the effects of market volatilities on Kingfa Science and GM Breweries 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 GM Breweries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and GM Breweries.
Diversification Opportunities for Kingfa Science and GM Breweries
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kingfa and GMBREW is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and GM Breweries Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GM Breweries Limited 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 GM Breweries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GM Breweries Limited has no effect on the direction of Kingfa Science i.e., Kingfa Science and GM Breweries go up and down completely randomly.
Pair Corralation between Kingfa Science and GM Breweries
Assuming the 90 days trading horizon Kingfa Science Technology is expected to under-perform the GM Breweries. In addition to that, Kingfa Science is 1.03 times more volatile than GM Breweries Limited. It trades about -0.09 of its total potential returns per unit of risk. GM Breweries Limited is currently generating about 0.03 per unit of volatility. If you would invest 76,530 in GM Breweries Limited on August 26, 2024 and sell it today you would earn a total of 745.00 from holding GM Breweries Limited or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingfa Science Technology vs. GM Breweries Limited
Performance |
| Timeline |
| Kingfa Science Technology |
| GM Breweries Limited |
Kingfa Science and GM Breweries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and GM Breweries
The main advantage of trading using opposite Kingfa Science and GM Breweries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, GM Breweries 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 GM Breweries will offset losses from the drop in GM Breweries' long position.| Kingfa Science vs. Rajnandini Metal Limited | Kingfa Science vs. Hisar Metal Industries | Kingfa Science vs. Associated Alcohols Breweries | Kingfa Science vs. Hilton Metal Forging |
| GM Breweries vs. The Orissa Minerals | GM Breweries vs. DSJ Keep Learning | GM Breweries vs. Kingfa Science Technology | GM Breweries vs. Rico Auto Industries |
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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