Correlation Between Kingfa Science and DJ Mediaprint

Can any of the company-specific risk be diversified away by investing in both Kingfa Science and DJ Mediaprint 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 Kingfa Science and DJ Mediaprint into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kingfa Science Technology and DJ Mediaprint Logistics, you can compare the effects of market volatilities on Kingfa Science and DJ Mediaprint 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 Kingfa Science with a short position of DJ Mediaprint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and DJ Mediaprint.

Diversification Opportunities for Kingfa Science and DJ Mediaprint

-0.06

Correlation Coefficient

Kingfa Science  DJ Mediaprint

Good diversification

The 3 months correlation between Kingfa and DJML is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and DJ Mediaprint Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DJ Mediaprint Logistics and Kingfa Science 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 Kingfa Science Technology are associated (or correlated) with DJ Mediaprint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DJ Mediaprint Logistics has no effect on the direction of Kingfa Science i.e., Kingfa Science and DJ Mediaprint go up and down completely randomly.

Pair Corralation between Kingfa Science and DJ Mediaprint

Assuming the 90 days trading horizon Kingfa Science Technology is expected to generate 0.89 times more return on investment than DJ Mediaprint. However, Kingfa Science Technology is 1.13 times less risky than DJ Mediaprint. It trades about 0.06 of its potential returns per unit of risk. DJ Mediaprint Logistics is currently generating about -0.05 per unit of risk. If you would invest  314,110  in Kingfa Science Technology on April 20, 2025 and sell it today you would earn a total of  22,620  from holding Kingfa Science Technology or generate 7.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Kingfa Science Technology  vs.  DJ Mediaprint Logistics

Kingfa Science Technology

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kingfa Science Technology are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, Kingfa Science may actually be approaching a critical reversion point that can send shares even higher in August 2025.

DJ Mediaprint Logistics

Risk-Adjusted Performance

Very Weak

Over the last 90 days DJ Mediaprint Logistics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Kingfa Science and DJ Mediaprint

The main advantage of trading using opposite Kingfa Science and DJ Mediaprint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, DJ Mediaprint 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 DJ Mediaprint will offset losses from the drop in DJ Mediaprint's long position.

The idea behind Kingfa Science Technology and DJ Mediaprint Logistics 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.

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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.