Correlation Between Kingfa Science and Trent
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By analyzing existing cross correlation between Kingfa Science Technology and Trent Limited, you can compare the effects of market volatilities on Kingfa Science and Trent 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 Trent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and Trent.
Diversification Opportunities for Kingfa Science and Trent
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kingfa and Trent is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and Trent Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trent 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 Trent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trent Limited has no effect on the direction of Kingfa Science i.e., Kingfa Science and Trent go up and down completely randomly.
Pair Corralation between Kingfa Science and Trent
Assuming the 90 days trading horizon Kingfa Science Technology is expected to generate 1.23 times more return on investment than Trent. However, Kingfa Science is 1.23 times more volatile than Trent Limited. It trades about 0.0 of its potential returns per unit of risk. Trent Limited is currently generating about -0.18 per unit of risk. If you would invest 328,395 in Kingfa Science Technology on September 13, 2024 and sell it today you would lose (2,490) from holding Kingfa Science Technology or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingfa Science Technology vs. Trent Limited
Performance |
| Timeline |
| Kingfa Science Technology |
| Trent Limited |
Kingfa Science and Trent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingfa Science and Trent
The main advantage of trading using opposite Kingfa Science and Trent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, Trent 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 Trent will offset losses from the drop in Trent's long position.| Kingfa Science vs. NMDC Limited | Kingfa Science vs. Steel Authority of | Kingfa Science vs. Embassy Office Parks | Kingfa Science vs. Gujarat Narmada Valley |
| Trent vs. Bajaj Holdings Investment | Trent vs. Pilani Investment and | Trent vs. Jindal Poly Investment | Trent vs. Edelweiss Financial Services |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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