Correlation Between POWERGRID Infrastructure and Kingfa Science
Specify exactly 2 symbols:
By analyzing existing cross correlation between POWERGRID Infrastructure Investment and Kingfa Science Technology, you can compare the effects of market volatilities on POWERGRID Infrastructure 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 POWERGRID Infrastructure with a short position of Kingfa Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of POWERGRID Infrastructure and Kingfa Science.
Diversification Opportunities for POWERGRID Infrastructure and Kingfa Science
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between POWERGRID and Kingfa is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding POWERGRID Infrastructure Inves 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 POWERGRID Infrastructure 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 POWERGRID Infrastructure Investment 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 POWERGRID Infrastructure i.e., POWERGRID Infrastructure and Kingfa Science go up and down completely randomly.
Pair Corralation between POWERGRID Infrastructure and Kingfa Science
Assuming the 90 days trading horizon POWERGRID Infrastructure Investment is expected to generate 0.48 times more return on investment than Kingfa Science. However, POWERGRID Infrastructure Investment is 2.07 times less risky than Kingfa Science. It trades about -0.23 of its potential returns per unit of risk. Kingfa Science Technology is currently generating about -0.15 per unit of risk. If you would invest 8,976 in POWERGRID Infrastructure Investment on August 30, 2024 and sell it today you would lose (373.00) from holding POWERGRID Infrastructure Investment or give up 4.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
POWERGRID Infrastructure Inves vs. Kingfa Science Technology
Performance |
| Timeline |
| POWERGRID Infrastructure |
| Kingfa Science Technology |
POWERGRID Infrastructure and Kingfa Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POWERGRID Infrastructure and Kingfa Science
The main advantage of trading using opposite POWERGRID Infrastructure and Kingfa Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POWERGRID Infrastructure 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.| POWERGRID Infrastructure vs. Reliance Industries Limited | POWERGRID Infrastructure vs. State Bank of | POWERGRID Infrastructure vs. HDFC Bank Limited | POWERGRID Infrastructure vs. Oil Natural Gas |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |