Correlation Between VIP Clothing and Kingfa Science
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By analyzing existing cross correlation between VIP Clothing Limited and Kingfa Science Technology, you can compare the effects of market volatilities on VIP Clothing 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 VIP Clothing with a short position of Kingfa Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIP Clothing and Kingfa Science.
Diversification Opportunities for VIP Clothing and Kingfa Science
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between VIP and Kingfa is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding VIP Clothing 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 VIP Clothing 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 VIP Clothing 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 VIP Clothing i.e., VIP Clothing and Kingfa Science go up and down completely randomly.
Pair Corralation between VIP Clothing and Kingfa Science
Assuming the 90 days trading horizon VIP Clothing is expected to generate 1.45 times less return on investment than Kingfa Science. But when comparing it to its historical volatility, VIP Clothing Limited is 1.14 times less risky than Kingfa Science. It trades about 0.1 of its potential returns per unit of risk. Kingfa Science Technology is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 190,467 in Kingfa Science Technology on August 31, 2024 and sell it today you would earn a total of 120,743 from holding Kingfa Science Technology or generate 63.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VIP Clothing Limited vs. Kingfa Science Technology
Performance |
| Timeline |
| VIP Clothing Limited |
| Kingfa Science Technology |
VIP Clothing and Kingfa Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIP Clothing and Kingfa Science
The main advantage of trading using opposite VIP Clothing and Kingfa Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIP Clothing 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.| VIP Clothing vs. Kingfa Science Technology | VIP Clothing vs. GTL Limited | VIP Clothing vs. Indo Amines Limited | VIP Clothing vs. HDFC Mutual Fund |
| Kingfa Science vs. EMBASSY OFFICE PARKS | Kingfa Science vs. Reliance Home Finance | Kingfa Science vs. Vertoz Advertising Limited | Kingfa Science vs. Shyam Metalics and |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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