Correlation Between Kingfa Science and HMT
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By analyzing existing cross correlation between Kingfa Science Technology and HMT Limited, you can compare the effects of market volatilities on Kingfa Science and HMT 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 HMT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and HMT.
Diversification Opportunities for Kingfa Science and HMT
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kingfa and HMT is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and HMT Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HMT 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 HMT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HMT Limited has no effect on the direction of Kingfa Science i.e., Kingfa Science and HMT go up and down completely randomly.
Pair Corralation between Kingfa Science and HMT
Assuming the 90 days trading horizon Kingfa Science Technology is expected to generate 1.04 times more return on investment than HMT. However, Kingfa Science is 1.04 times more volatile than HMT Limited. It trades about 0.08 of its potential returns per unit of risk. HMT Limited is currently generating about 0.06 per unit of risk. If you would invest 130,634 in Kingfa Science Technology on September 23, 2024 and sell it today you would earn a total of 211,306 from holding Kingfa Science Technology or generate 161.75% 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. HMT Limited
Performance |
| Timeline |
| Kingfa Science Technology |
| HMT Limited |
Kingfa Science and HMT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and HMT
The main advantage of trading using opposite Kingfa Science and HMT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, HMT 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 HMT will offset losses from the drop in HMT's long position.| Kingfa Science vs. Alkali Metals Limited | Kingfa Science vs. Ankit Metal Power | Kingfa Science vs. Hilton Metal Forging | Kingfa Science vs. Bigbloc Construction Limited |
| HMT vs. Kaushalya Infrastructure Development | HMT vs. Tarapur Transformers Limited | HMT vs. Kingfa Science Technology | HMT 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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