Correlation Between Kingfa Science and GTL
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By analyzing existing cross correlation between Kingfa Science Technology and GTL Limited, you can compare the effects of market volatilities on Kingfa Science and GTL 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 GTL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and GTL.
Diversification Opportunities for Kingfa Science and GTL
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kingfa and GTL is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and GTL Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GTL 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 GTL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GTL Limited has no effect on the direction of Kingfa Science i.e., Kingfa Science and GTL go up and down completely randomly.
Pair Corralation between Kingfa Science and GTL
Assuming the 90 days trading horizon Kingfa Science Technology is expected to generate 0.69 times more return on investment than GTL. However, Kingfa Science Technology is 1.46 times less risky than GTL. It trades about 0.07 of its potential returns per unit of risk. GTL Limited is currently generating about 0.04 per unit of risk. If you would invest 126,716 in Kingfa Science Technology on August 30, 2024 and sell it today you would earn a total of 161,069 from holding Kingfa Science Technology or generate 127.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Kingfa Science Technology vs. GTL Limited
Performance |
| Timeline |
| Kingfa Science Technology |
| GTL Limited |
Kingfa Science and GTL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and GTL
The main advantage of trading using opposite Kingfa Science and GTL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, GTL 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 GTL will offset losses from the drop in GTL's long position.| Kingfa Science vs. Steel Authority of | Kingfa Science vs. Embassy Office Parks | Kingfa Science vs. Indian Metals Ferro | Kingfa Science vs. JTL Industries |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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