Correlation Between WESTLIFE FOODWORLD and Kingfa Science
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By analyzing existing cross correlation between WESTLIFE FOODWORLD LIMITED and Kingfa Science Technology, you can compare the effects of market volatilities on WESTLIFE FOODWORLD 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 WESTLIFE FOODWORLD with a short position of Kingfa Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of WESTLIFE FOODWORLD and Kingfa Science.
Diversification Opportunities for WESTLIFE FOODWORLD and Kingfa Science
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WESTLIFE and Kingfa is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding WESTLIFE FOODWORLD 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 WESTLIFE FOODWORLD 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 WESTLIFE FOODWORLD 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 WESTLIFE FOODWORLD i.e., WESTLIFE FOODWORLD and Kingfa Science go up and down completely randomly.
Pair Corralation between WESTLIFE FOODWORLD and Kingfa Science
Assuming the 90 days trading horizon WESTLIFE FOODWORLD is expected to generate 1.92 times less return on investment than Kingfa Science. But when comparing it to its historical volatility, WESTLIFE FOODWORLD LIMITED is 1.25 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 0.16 of returns per unit of risk over similar time horizon. If you would invest 307,875 in Kingfa Science Technology on September 6, 2024 and sell it today you would earn a total of 25,160 from holding Kingfa Science Technology or generate 8.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
WESTLIFE FOODWORLD LIMITED vs. Kingfa Science Technology
Performance |
Timeline |
WESTLIFE FOODWORLD |
Kingfa Science Technology |
WESTLIFE FOODWORLD and Kingfa Science Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with WESTLIFE FOODWORLD and Kingfa Science
The main advantage of trading using opposite WESTLIFE FOODWORLD and Kingfa Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WESTLIFE FOODWORLD 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.WESTLIFE FOODWORLD vs. TECIL Chemicals and | WESTLIFE FOODWORLD vs. Tube Investments of | WESTLIFE FOODWORLD vs. UTI Asset Management | WESTLIFE FOODWORLD vs. Vishnu Chemicals 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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