Correlation Between General Insurance and Kingfa Science
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By analyzing existing cross correlation between General Insurance and Kingfa Science Technology, you can compare the effects of market volatilities on General Insurance 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 General Insurance with a short position of Kingfa Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Insurance and Kingfa Science.
Diversification Opportunities for General Insurance and Kingfa Science
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between General and Kingfa is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding General Insurance 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 General Insurance 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 General Insurance 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 General Insurance i.e., General Insurance and Kingfa Science go up and down completely randomly.
Pair Corralation between General Insurance and Kingfa Science
Assuming the 90 days trading horizon General Insurance is expected to generate 0.97 times more return on investment than Kingfa Science. However, General Insurance is 1.04 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 -0.04 per unit of risk. If you would invest 39,505 in General Insurance on September 18, 2024 and sell it today you would earn a total of 4,740 from holding General Insurance or generate 12.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
General Insurance vs. Kingfa Science Technology
Performance |
Timeline |
General Insurance |
Kingfa Science Technology |
General Insurance and Kingfa Science Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with General Insurance and Kingfa Science
The main advantage of trading using opposite General Insurance and Kingfa Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Insurance 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.General Insurance vs. Sonata Software Limited | General Insurance vs. Uniinfo Telecom Services | General Insurance vs. Compucom Software Limited | General Insurance vs. Indraprastha Medical |
Kingfa Science vs. Le Travenues Technology | Kingfa Science vs. Newgen Software Technologies | Kingfa Science vs. Dev Information Technology | Kingfa Science vs. R S Software |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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