Correlation Between Kingfa Science and SEPC
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By analyzing existing cross correlation between Kingfa Science Technology and SEPC Limited, you can compare the effects of market volatilities on Kingfa Science and SEPC 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 SEPC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and SEPC.
Diversification Opportunities for Kingfa Science and SEPC
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kingfa and SEPC is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and SEPC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEPC 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 SEPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEPC Limited has no effect on the direction of Kingfa Science i.e., Kingfa Science and SEPC go up and down completely randomly.
Pair Corralation between Kingfa Science and SEPC
Assuming the 90 days trading horizon Kingfa Science Technology is expected to generate 1.19 times more return on investment than SEPC. However, Kingfa Science is 1.19 times more volatile than SEPC Limited. It trades about -0.12 of its potential returns per unit of risk. SEPC Limited is currently generating about -0.19 per unit of risk. If you would invest 347,755 in Kingfa Science Technology on October 23, 2024 and sell it today you would lose (33,025) from holding Kingfa Science Technology or give up 9.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Kingfa Science Technology vs. SEPC Limited
Performance |
| Timeline |
| Kingfa Science Technology |
| SEPC Limited |
Kingfa Science and SEPC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and SEPC
The main advantage of trading using opposite Kingfa Science and SEPC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, SEPC 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 SEPC will offset losses from the drop in SEPC's long position.| Kingfa Science vs. Country Club Hospitality | Kingfa Science vs. JGCHEMICALS LIMITED | Kingfa Science vs. Dharani SugarsChemicals Limited | Kingfa Science vs. Vishnu Chemicals Limited |
| SEPC vs. Hindustan Construction | SEPC vs. DJ Mediaprint Logistics | SEPC vs. Diligent Media | SEPC vs. Sasken Technologies 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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