Correlation Between SBI Mutual and Kingfa Science
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By analyzing existing cross correlation between SBI Mutual Fund and Kingfa Science Technology, you can compare the effects of market volatilities on SBI Mutual 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 SBI Mutual with a short position of Kingfa Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBI Mutual and Kingfa Science.
Diversification Opportunities for SBI Mutual and Kingfa Science
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SBI and Kingfa is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding SBI Mutual Fund 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 SBI Mutual 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 SBI Mutual Fund 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 SBI Mutual i.e., SBI Mutual and Kingfa Science go up and down completely randomly.
Pair Corralation between SBI Mutual and Kingfa Science
Assuming the 90 days trading horizon SBI Mutual is expected to generate 3.6 times less return on investment than Kingfa Science. But when comparing it to its historical volatility, SBI Mutual Fund is 3.32 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 0.05 of returns per unit of risk over similar time horizon. If you would invest 221,094 in Kingfa Science Technology on September 12, 2024 and sell it today you would earn a total of 102,861 from holding Kingfa Science Technology or generate 46.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.69% |
| Values | Daily Returns |
SBI Mutual Fund vs. Kingfa Science Technology
Performance |
| Timeline |
| SBI Mutual Fund |
| Kingfa Science Technology |
SBI Mutual and Kingfa Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBI Mutual and Kingfa Science
The main advantage of trading using opposite SBI Mutual and Kingfa Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBI Mutual 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.| SBI Mutual vs. Kingfa Science Technology | SBI Mutual vs. GTL Limited | SBI Mutual vs. Agro Phos India | SBI Mutual vs. Indo Amines Limited |
| Kingfa Science vs. Steel Authority of | Kingfa Science vs. Embassy Office Parks | Kingfa Science vs. Indian Metals Ferro | Kingfa Science vs. JTL Industries |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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