Correlation Between Kingfa Science and NIFTYETF
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By analyzing existing cross correlation between Kingfa Science Technology and NIFTYETF, you can compare the effects of market volatilities on Kingfa Science and NIFTYETF 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 NIFTYETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and NIFTYETF.
Diversification Opportunities for Kingfa Science and NIFTYETF
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kingfa and NIFTYETF is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and NIFTYETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIFTYETF 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 NIFTYETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIFTYETF has no effect on the direction of Kingfa Science i.e., Kingfa Science and NIFTYETF go up and down completely randomly.
Pair Corralation between Kingfa Science and NIFTYETF
Assuming the 90 days trading horizon Kingfa Science Technology is expected to generate 2.02 times more return on investment than NIFTYETF. However, Kingfa Science is 2.02 times more volatile than NIFTYETF. It trades about 0.02 of its potential returns per unit of risk. NIFTYETF is currently generating about 0.04 per unit of risk. If you would invest 310,160 in Kingfa Science Technology on September 3, 2024 and sell it today you would earn a total of 1,050 from holding Kingfa Science Technology or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingfa Science Technology vs. NIFTYETF
Performance |
| Timeline |
| Kingfa Science Technology |
| NIFTYETF |
Kingfa Science and NIFTYETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and NIFTYETF
The main advantage of trading using opposite Kingfa Science and NIFTYETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, NIFTYETF 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 NIFTYETF will offset losses from the drop in NIFTYETF's long position.| Kingfa Science vs. NMDC Limited | Kingfa Science vs. Steel Authority of | Kingfa Science vs. Embassy Office Parks | Kingfa Science vs. Indian Metals Ferro |
| NIFTYETF vs. ITETF | NIFTYETF vs. ICICI Prudential Nifty | NIFTYETF vs. Nippon India Mutual | NIFTYETF vs. MAKEINDIA |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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