Correlation Between Kingfa Science and Infosys
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By analyzing existing cross correlation between Kingfa Science Technology and Infosys Limited, you can compare the effects of market volatilities on Kingfa Science and Infosys 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 Infosys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and Infosys.
Diversification Opportunities for Kingfa Science and Infosys
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kingfa and Infosys is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and Infosys Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infosys 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 Infosys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infosys Limited has no effect on the direction of Kingfa Science i.e., Kingfa Science and Infosys go up and down completely randomly.
Pair Corralation between Kingfa Science and Infosys
Assuming the 90 days trading horizon Kingfa Science Technology is expected to under-perform the Infosys. In addition to that, Kingfa Science is 2.32 times more volatile than Infosys Limited. It trades about -0.07 of its total potential returns per unit of risk. Infosys Limited is currently generating about -0.04 per unit of volatility. If you would invest 193,900 in Infosys Limited on November 7, 2024 and sell it today you would lose (4,020) from holding Infosys Limited or give up 2.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Kingfa Science Technology vs. Infosys Limited
Performance |
| Timeline |
| Kingfa Science Technology |
| Infosys Limited |
Kingfa Science and Infosys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and Infosys
The main advantage of trading using opposite Kingfa Science and Infosys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, Infosys 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 Infosys will offset losses from the drop in Infosys' long position.| Kingfa Science vs. Future Retail Limited | Kingfa Science vs. Action Construction Equipment | Kingfa Science vs. Electronics Mart India | Kingfa Science vs. Datamatics Global Services |
| Infosys vs. IOL Chemicals and | Infosys vs. Hindcon Chemicals Limited | Infosys vs. Vertoz Advertising Limited | Infosys vs. Associated Alcohols Breweries |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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