Correlation Between Kingfa Science and MRF
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By analyzing existing cross correlation between Kingfa Science Technology and MRF Limited, you can compare the effects of market volatilities on Kingfa Science and MRF 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 MRF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and MRF.
Diversification Opportunities for Kingfa Science and MRF
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kingfa and MRF is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and MRF Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MRF 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 MRF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MRF Limited has no effect on the direction of Kingfa Science i.e., Kingfa Science and MRF go up and down completely randomly.
Pair Corralation between Kingfa Science and MRF
Assuming the 90 days trading horizon Kingfa Science Technology is expected to generate 2.31 times more return on investment than MRF. However, Kingfa Science is 2.31 times more volatile than MRF Limited. It trades about 0.07 of its potential returns per unit of risk. MRF Limited is currently generating about 0.05 per unit of risk. If you would invest 130,988 in Kingfa Science Technology on August 24, 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingfa Science Technology vs. MRF Limited
Performance |
| Timeline |
| Kingfa Science Technology |
| MRF Limited |
Kingfa Science and MRF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and MRF
The main advantage of trading using opposite Kingfa Science and MRF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, MRF 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 MRF will offset losses from the drop in MRF'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 |
| MRF vs. Styrenix Performance Materials | MRF vs. Privi Speciality Chemicals | MRF vs. Elgi Rubber | MRF vs. V2 Retail 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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