Correlation Between Power Finance and Kingfa Science
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By analyzing existing cross correlation between Power Finance and Kingfa Science Technology, you can compare the effects of market volatilities on Power Finance 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 Power Finance with a short position of Kingfa Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Power Finance and Kingfa Science.
Diversification Opportunities for Power Finance and Kingfa Science
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Power and Kingfa is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Power Finance 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 Power Finance 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 Power Finance 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 Power Finance i.e., Power Finance and Kingfa Science go up and down completely randomly.
Pair Corralation between Power Finance and Kingfa Science
Assuming the 90 days trading horizon Power Finance is expected to generate 1.28 times more return on investment than Kingfa Science. However, Power Finance is 1.28 times more volatile than Kingfa Science Technology. It trades about 0.1 of its potential returns per unit of risk. Kingfa Science Technology is currently generating about 0.08 per unit of risk. If you would invest 10,894 in Power Finance on September 23, 2024 and sell it today you would earn a total of 34,436 from holding Power Finance or generate 316.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Power Finance vs. Kingfa Science Technology
Performance |
| Timeline |
| Power Finance |
| Kingfa Science Technology |
Power Finance and Kingfa Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Power Finance and Kingfa Science
The main advantage of trading using opposite Power Finance and Kingfa Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Power Finance 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.| Power Finance vs. Kingfa Science Technology | Power Finance vs. Rico Auto Industries | Power Finance vs. GACM Technologies Limited | Power Finance vs. COSMO FIRST LIMITED |
| Kingfa Science vs. Alkali Metals Limited | Kingfa Science vs. Ankit Metal Power | Kingfa Science vs. Hilton Metal Forging | Kingfa Science vs. Bigbloc Construction 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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