Correlation Between S P and Kingfa Science
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By analyzing existing cross correlation between S P Apparels and Kingfa Science Technology, you can compare the effects of market volatilities on S P 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 S P with a short position of Kingfa Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of S P and Kingfa Science.
Diversification Opportunities for S P and Kingfa Science
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPAL and Kingfa is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding S P Apparels 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 S P 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 S P Apparels 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 S P i.e., S P and Kingfa Science go up and down completely randomly.
Pair Corralation between S P and Kingfa Science
Assuming the 90 days trading horizon S P Apparels is expected to under-perform the Kingfa Science. But the stock apears to be less risky and, when comparing its historical volatility, S P Apparels is 1.51 times less risky than Kingfa Science. The stock trades about -0.14 of its potential returns per unit of risk. The Kingfa Science Technology is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 315,395 in Kingfa Science Technology on October 15, 2024 and sell it today you would earn a total of 34,985 from holding Kingfa Science Technology or generate 11.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
S P Apparels vs. Kingfa Science Technology
Performance |
| Timeline |
| S P Apparels |
| Kingfa Science Technology |
S P and Kingfa Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with S P and Kingfa Science
The main advantage of trading using opposite S P and Kingfa Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if S P 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.| S P vs. Paramount Communications Limited | S P vs. Garuda Construction Engineering | S P vs. DJ Mediaprint Logistics | S P vs. UFO Moviez India |
| Kingfa Science vs. TVS Electronics Limited | Kingfa Science vs. Shyam Telecom Limited | Kingfa Science vs. S P Apparels | Kingfa Science vs. BF Utilities 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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