Correlation Between City Union and Kingfa Science
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By analyzing existing cross correlation between City Union Bank and Kingfa Science Technology, you can compare the effects of market volatilities on City Union 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 City Union with a short position of Kingfa Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Union and Kingfa Science.
Diversification Opportunities for City Union and Kingfa Science
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between City and Kingfa is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding City Union Bank 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 City Union 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 City Union Bank 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 City Union i.e., City Union and Kingfa Science go up and down completely randomly.
Pair Corralation between City Union and Kingfa Science
Assuming the 90 days trading horizon City Union is expected to generate 1.42 times less return on investment than Kingfa Science. But when comparing it to its historical volatility, City Union Bank is 1.52 times less risky than Kingfa Science. It trades about 0.06 of its potential returns per unit of risk. Kingfa Science Technology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 229,371 in Kingfa Science Technology on September 26, 2024 and sell it today you would earn a total of 120,404 from holding Kingfa Science Technology or generate 52.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.34% |
Values | Daily Returns |
City Union Bank vs. Kingfa Science Technology
Performance |
Timeline |
City Union Bank |
Kingfa Science Technology |
City Union and Kingfa Science Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with City Union and Kingfa Science
The main advantage of trading using opposite City Union and Kingfa Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Union 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.City Union vs. Kingfa Science Technology | City Union vs. Rico Auto Industries | City Union vs. GACM Technologies Limited | City Union vs. COSMO FIRST LIMITED |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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