Correlation Between MRF and Kingfa Science
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By analyzing existing cross correlation between MRF Limited and Kingfa Science Technology, you can compare the effects of market volatilities on MRF and Kingfa Science 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 MRF with a short position of Kingfa Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of MRF and Kingfa Science.
Diversification Opportunities for MRF and Kingfa Science
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MRF and Kingfa is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding MRF Limited and Kingfa Science Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingfa Science Technology and MRF 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 MRF Limited are associated (or correlated) with Kingfa Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingfa Science Technology has no effect on the direction of MRF i.e., MRF and Kingfa Science go up and down completely randomly.
Pair Corralation between MRF and Kingfa Science
Assuming the 90 days trading horizon MRF is expected to generate 3.19 times less return on investment than Kingfa Science. But when comparing it to its historical volatility, MRF Limited is 2.31 times less risky than Kingfa Science. It trades about 0.05 of its potential returns per unit of risk. Kingfa Science Technology is currently generating about 0.07 of returns per unit of risk over similar time horizon. 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 |
MRF Limited vs. Kingfa Science Technology
Performance |
| Timeline |
| MRF Limited |
| Kingfa Science Technology |
MRF and Kingfa Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MRF and Kingfa Science
The main advantage of trading using opposite MRF and Kingfa Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MRF position performs unexpectedly, Kingfa Science 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 Kingfa Science will offset losses from the drop in Kingfa Science's long position.| MRF vs. Styrenix Performance Materials | MRF vs. Privi Speciality Chemicals | MRF vs. Elgi Rubber | MRF vs. V2 Retail Limited |
| Kingfa Science vs. Kamat Hotels Limited | Kingfa Science vs. MIRC Electronics Limited | Kingfa Science vs. TVS Electronics Limited | Kingfa Science vs. EMBASSY OFFICE PARKS |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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