Correlation Between Xchanging Solutions and Kingfa Science
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By analyzing existing cross correlation between Xchanging Solutions Limited and Kingfa Science Technology, you can compare the effects of market volatilities on Xchanging Solutions 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 Xchanging Solutions with a short position of Kingfa Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xchanging Solutions and Kingfa Science.
Diversification Opportunities for Xchanging Solutions and Kingfa Science
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xchanging and Kingfa is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Xchanging Solutions 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 Xchanging Solutions 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 Xchanging Solutions 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 Xchanging Solutions i.e., Xchanging Solutions and Kingfa Science go up and down completely randomly.
Pair Corralation between Xchanging Solutions and Kingfa Science
Assuming the 90 days trading horizon Xchanging Solutions Limited is expected to generate 0.71 times more return on investment than Kingfa Science. However, Xchanging Solutions Limited is 1.4 times less risky than Kingfa Science. It trades about -0.04 of its potential returns per unit of risk. Kingfa Science Technology is currently generating about -0.07 per unit of risk. If you would invest 10,904 in Xchanging Solutions Limited on August 29, 2024 and sell it today you would lose (144.00) from holding Xchanging Solutions Limited or give up 1.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xchanging Solutions Limited vs. Kingfa Science Technology
Performance |
| Timeline |
| Xchanging Solutions |
| Kingfa Science Technology |
Xchanging Solutions and Kingfa Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xchanging Solutions and Kingfa Science
The main advantage of trading using opposite Xchanging Solutions and Kingfa Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xchanging Solutions 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.| Xchanging Solutions vs. Kingfa Science Technology | Xchanging Solutions vs. Rico Auto Industries | Xchanging Solutions vs. GACM Technologies Limited | Xchanging Solutions vs. COSMO FIRST LIMITED |
| Kingfa Science vs. Madhav Copper Limited | Kingfa Science vs. Aban Offshore Limited | Kingfa Science vs. Aarti Drugs Limited | Kingfa Science vs. Akums Drugs 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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