Correlation Between Kingfa Science and Investment Trust
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By analyzing existing cross correlation between Kingfa Science Technology and The Investment Trust, you can compare the effects of market volatilities on Kingfa Science and Investment Trust 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 Investment Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and Investment Trust.
Diversification Opportunities for Kingfa Science and Investment Trust
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kingfa and Investment is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and The Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment Trust 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 Investment Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment Trust has no effect on the direction of Kingfa Science i.e., Kingfa Science and Investment Trust go up and down completely randomly.
Pair Corralation between Kingfa Science and Investment Trust
Assuming the 90 days trading horizon Kingfa Science Technology is expected to under-perform the Investment Trust. But the stock apears to be less risky and, when comparing its historical volatility, Kingfa Science Technology is 1.71 times less risky than Investment Trust. The stock trades about -0.11 of its potential returns per unit of risk. The The Investment Trust is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 20,344 in The Investment Trust on August 27, 2024 and sell it today you would earn a total of 533.00 from holding The Investment Trust or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingfa Science Technology vs. The Investment Trust
Performance |
| Timeline |
| Kingfa Science Technology |
| Investment Trust |
Kingfa Science and Investment Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and Investment Trust
The main advantage of trading using opposite Kingfa Science and Investment Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, Investment Trust 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 Investment Trust will offset losses from the drop in Investment Trust's long position.| Kingfa Science vs. Clean Science and | Kingfa Science vs. Speciality Restaurants Limited | Kingfa Science vs. Network18 Media Investments | Kingfa Science vs. Cholamandalam Investment and |
| Investment Trust vs. Kingfa Science Technology | Investment Trust vs. Rico Auto Industries | Investment Trust vs. GACM Technologies Limited | Investment Trust 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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