Correlation Between Kingfa Science and Mold Tek
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By analyzing existing cross correlation between Kingfa Science Technology and Mold Tek Packaging Limited, you can compare the effects of market volatilities on Kingfa Science and Mold Tek 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 Mold Tek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and Mold Tek.
Diversification Opportunities for Kingfa Science and Mold Tek
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kingfa and Mold is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and Mold Tek Packaging Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mold Tek Packaging 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 Mold Tek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mold Tek Packaging has no effect on the direction of Kingfa Science i.e., Kingfa Science and Mold Tek go up and down completely randomly.
Pair Corralation between Kingfa Science and Mold Tek
Assuming the 90 days trading horizon Kingfa Science Technology is expected to generate 1.91 times more return on investment than Mold Tek. However, Kingfa Science is 1.91 times more volatile than Mold Tek Packaging Limited. It trades about 0.07 of its potential returns per unit of risk. Mold Tek Packaging Limited is currently generating about -0.05 per unit of risk. If you would invest 189,809 in Kingfa Science Technology on September 12, 2024 and sell it today you would earn a total of 134,146 from holding Kingfa Science Technology or generate 70.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.42% |
| Values | Daily Returns |
Kingfa Science Technology vs. Mold Tek Packaging Limited
Performance |
| Timeline |
| Kingfa Science Technology |
| Mold Tek Packaging |
Kingfa Science and Mold Tek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and Mold Tek
The main advantage of trading using opposite Kingfa Science and Mold Tek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, Mold Tek 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 Mold Tek will offset losses from the drop in Mold Tek'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 |
| Mold Tek vs. Kingfa Science Technology | Mold Tek vs. LLOYDS METALS AND | Mold Tek vs. LT Technology Services | Mold Tek vs. Reliance Industrial Infrastructure |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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