Correlation Between Poly Medicure and Kingfa Science
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By analyzing existing cross correlation between Poly Medicure Limited and Kingfa Science Technology, you can compare the effects of market volatilities on Poly Medicure 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 Poly Medicure with a short position of Kingfa Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Poly Medicure and Kingfa Science.
Diversification Opportunities for Poly Medicure and Kingfa Science
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Poly and Kingfa is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Poly Medicure 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 Poly Medicure 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 Poly Medicure 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 Poly Medicure i.e., Poly Medicure and Kingfa Science go up and down completely randomly.
Pair Corralation between Poly Medicure and Kingfa Science
Assuming the 90 days trading horizon Poly Medicure Limited is expected to under-perform the Kingfa Science. But the stock apears to be less risky and, when comparing its historical volatility, Poly Medicure Limited is 1.91 times less risky than Kingfa Science. The stock trades about -0.29 of its potential returns per unit of risk. The Kingfa Science Technology is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 343,500 in Kingfa Science Technology on November 3, 2024 and sell it today you would lose (17,880) from holding Kingfa Science Technology or give up 5.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Poly Medicure Limited vs. Kingfa Science Technology
Performance |
| Timeline |
| Poly Medicure Limited |
| Kingfa Science Technology |
Poly Medicure and Kingfa Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Poly Medicure and Kingfa Science
The main advantage of trading using opposite Poly Medicure and Kingfa Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poly Medicure 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.| Poly Medicure vs. UTI Asset Management | Poly Medicure vs. Home First Finance | Poly Medicure vs. Praxis Home Retail | Poly Medicure vs. Datamatics Global Services |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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