Correlation Between Mrs Bectors and Kingfa Science

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Can any of the company-specific risk be diversified away by investing in both Mrs Bectors and Kingfa Science at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Mrs Bectors and Kingfa Science into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mrs Bectors Food and Kingfa Science Technology, you can compare the effects of market volatilities on Mrs Bectors 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 Mrs Bectors with a short position of Kingfa Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mrs Bectors and Kingfa Science.

Diversification Opportunities for Mrs Bectors and Kingfa Science

MrsKingfaDiversified AwayMrsKingfaDiversified Away100%
-0.15
  Correlation Coefficient

Good diversification

The 3 months correlation between Mrs and Kingfa is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Mrs Bectors Food 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 Mrs Bectors 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 Mrs Bectors Food 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 Mrs Bectors i.e., Mrs Bectors and Kingfa Science go up and down completely randomly.

Pair Corralation between Mrs Bectors and Kingfa Science

Assuming the 90 days trading horizon Mrs Bectors Food is expected to under-perform the Kingfa Science. But the stock apears to be less risky and, when comparing its historical volatility, Mrs Bectors Food is 1.22 times less risky than Kingfa Science. The stock trades about -0.1 of its potential returns per unit of risk. The Kingfa Science Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  299,645  in Kingfa Science Technology on October 27, 2024 and sell it today you would lose (1,195) from holding Kingfa Science Technology or give up 0.4% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Mrs Bectors Food  vs.  Kingfa Science Technology

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -1001020
JavaScript chart by amCharts 3.21.15BECTORFOOD KINGFA
       Timeline  
Mrs Bectors Food 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Mrs Bectors Food has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan1,5001,6001,7001,8001,900
Kingfa Science Technology 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Kingfa Science Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Kingfa Science is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan2,8003,0003,2003,4003,6003,8004,000

Mrs Bectors and Kingfa Science Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.85-2.88-1.91-0.950.00.881.772.673.56 0.0450.0500.0550.0600.0650.070
JavaScript chart by amCharts 3.21.15BECTORFOOD KINGFA
       Returns  

Pair Trading with Mrs Bectors and Kingfa Science

The main advantage of trading using opposite Mrs Bectors and Kingfa Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mrs Bectors 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.
The idea behind Mrs Bectors Food and Kingfa Science Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.

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