Correlation Between Kingfa Science and Shivalik Bimetal

Can any of the company-specific risk be diversified away by investing in both Kingfa Science and Shivalik Bimetal 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 Shivalik Bimetal 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 Shivalik Bimetal Controls, you can compare the effects of market volatilities on Kingfa Science and Shivalik Bimetal 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 Shivalik Bimetal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingfa Science and Shivalik Bimetal.

Diversification Opportunities for Kingfa Science and Shivalik Bimetal

0.13

Correlation Coefficient

Kingfa Science  Shivalik Bimetal

Average diversification

The 3 months correlation between Kingfa and Shivalik is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and Shivalik Bimetal Controls in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shivalik Bimetal Controls 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 Shivalik Bimetal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shivalik Bimetal Controls has no effect on the direction of Kingfa Science i.e., Kingfa Science and Shivalik Bimetal go up and down completely randomly.

Pair Corralation between Kingfa Science and Shivalik Bimetal

Assuming the 90 days trading horizon Kingfa Science is expected to generate 1.5 times less return on investment than Shivalik Bimetal. But when comparing it to its historical volatility, Kingfa Science Technology is 1.08 times less risky than Shivalik Bimetal. It trades about 0.1 of its potential returns per unit of risk. Shivalik Bimetal Controls is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  46,065  in Shivalik Bimetal Controls on April 1, 2025 and sell it today you would earn a total of  9,660  from holding Shivalik Bimetal Controls or generate 20.97% return on investment over 90 days.

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

Kingfa Science Technology  vs.  Shivalik Bimetal Controls

Kingfa Science Technology

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kingfa Science Technology are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain technical and fundamental indicators, Kingfa Science sustained solid returns over the last few months and may actually be approaching a breakup point.

Shivalik Bimetal Controls

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Shivalik Bimetal Controls are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Shivalik Bimetal unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kingfa Science and Shivalik Bimetal

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

The idea behind Kingfa Science Technology and Shivalik Bimetal Controls 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.