Correlation Between Linc and Kingfa Science
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By analyzing existing cross correlation between Linc Limited and Kingfa Science Technology, you can compare the effects of market volatilities on Linc 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 Linc with a short position of Kingfa Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linc and Kingfa Science.
Diversification Opportunities for Linc and Kingfa Science
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Linc and Kingfa is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Linc 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 Linc 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 Linc 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 Linc i.e., Linc and Kingfa Science go up and down completely randomly.
Pair Corralation between Linc and Kingfa Science
Assuming the 90 days trading horizon Linc Limited is expected to generate 1.03 times more return on investment than Kingfa Science. However, Linc is 1.03 times more volatile than Kingfa Science Technology. It trades about 0.43 of its potential returns per unit of risk. Kingfa Science Technology is currently generating about 0.35 per unit of risk. If you would invest 15,344 in Linc Limited on September 23, 2024 and sell it today you would earn a total of 3,896 from holding Linc Limited or generate 25.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Linc Limited vs. Kingfa Science Technology
Performance |
Timeline |
Linc Limited |
Kingfa Science Technology |
Linc and Kingfa Science Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Linc and Kingfa Science
The main advantage of trading using opposite Linc and Kingfa Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linc 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.Linc vs. Kingfa Science Technology | Linc vs. Rico Auto Industries | Linc vs. GACM Technologies Limited | Linc 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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