Correlation Between Kingfa Science and Honeywell Automation
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By analyzing existing cross correlation between Kingfa Science Technology and Honeywell Automation India, you can compare the effects of market volatilities on Kingfa Science and Honeywell Automation 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 Honeywell Automation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and Honeywell Automation.
Diversification Opportunities for Kingfa Science and Honeywell Automation
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kingfa and Honeywell is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and Honeywell Automation India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Honeywell Automation 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 Honeywell Automation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Honeywell Automation has no effect on the direction of Kingfa Science i.e., Kingfa Science and Honeywell Automation go up and down completely randomly.
Pair Corralation between Kingfa Science and Honeywell Automation
Assuming the 90 days trading horizon Kingfa Science Technology is expected to generate 0.98 times more return on investment than Honeywell Automation. However, Kingfa Science Technology is 1.02 times less risky than Honeywell Automation. It trades about -0.15 of its potential returns per unit of risk. Honeywell Automation India is currently generating about -0.5 per unit of risk. If you would invest 305,305 in Kingfa Science Technology on August 24, 2024 and sell it today you would lose (19,185) from holding Kingfa Science Technology or give up 6.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingfa Science Technology vs. Honeywell Automation India
Performance |
| Timeline |
| Kingfa Science Technology |
| Honeywell Automation |
Kingfa Science and Honeywell Automation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and Honeywell Automation
The main advantage of trading using opposite Kingfa Science and Honeywell Automation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, Honeywell Automation 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 Honeywell Automation will offset losses from the drop in Honeywell Automation's long position.| Kingfa Science vs. Kamat Hotels Limited | Kingfa Science vs. MIRC Electronics Limited | Kingfa Science vs. TVS Electronics Limited | Kingfa Science vs. EMBASSY OFFICE PARKS |
| Honeywell Automation vs. Vaxtex Cotfab Limited | Honeywell Automation vs. Texmaco Rail Engineering | Honeywell Automation vs. Moksh Ornaments Limited | Honeywell Automation vs. Jindal Drilling And |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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