Correlation Between Kingfa Science and Kilitch Drugs
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By analyzing existing cross correlation between Kingfa Science Technology and Kilitch Drugs Limited, you can compare the effects of market volatilities on Kingfa Science and Kilitch Drugs 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 Kilitch Drugs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and Kilitch Drugs.
Diversification Opportunities for Kingfa Science and Kilitch Drugs
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kingfa and Kilitch is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and Kilitch Drugs Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kilitch Drugs 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 Kilitch Drugs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kilitch Drugs Limited has no effect on the direction of Kingfa Science i.e., Kingfa Science and Kilitch Drugs go up and down completely randomly.
Pair Corralation between Kingfa Science and Kilitch Drugs
Assuming the 90 days trading horizon Kingfa Science Technology is expected to generate 1.04 times more return on investment than Kilitch Drugs. However, Kingfa Science is 1.04 times more volatile than Kilitch Drugs Limited. It trades about 0.07 of its potential returns per unit of risk. Kilitch Drugs Limited is currently generating about 0.06 per unit of risk. If you would invest 130,988 in Kingfa Science Technology on August 25, 2024 and sell it today you would earn a total of 155,132 from holding Kingfa Science Technology or generate 118.43% 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. Kilitch Drugs Limited
Performance |
| Timeline |
| Kingfa Science Technology |
| Kilitch Drugs Limited |
Kingfa Science and Kilitch Drugs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and Kilitch Drugs
The main advantage of trading using opposite Kingfa Science and Kilitch Drugs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, Kilitch Drugs 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 Kilitch Drugs will offset losses from the drop in Kilitch Drugs' 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 |
| Kilitch Drugs vs. Kingfa Science Technology | Kilitch Drugs vs. Rico Auto Industries | Kilitch Drugs vs. GACM Technologies Limited | Kilitch Drugs vs. COSMO FIRST LIMITED |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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