Correlation Between Kingfa Science and Blue Coast

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

Diversification Opportunities for Kingfa Science and Blue Coast

0.17
  Correlation Coefficient

Average diversification

The 3 months correlation between Kingfa and Blue is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Kingfa Science Technology and Blue Coast Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Coast Hotels 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 Blue Coast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Coast Hotels has no effect on the direction of Kingfa Science i.e., Kingfa Science and Blue Coast go up and down completely randomly.

Pair Corralation between Kingfa Science and Blue Coast

Assuming the 90 days trading horizon Kingfa Science Technology is expected to generate 0.61 times more return on investment than Blue Coast. However, Kingfa Science Technology is 1.65 times less risky than Blue Coast. It trades about -0.04 of its potential returns per unit of risk. Blue Coast Hotels is currently generating about -0.17 per unit of risk. If you would invest  437,500  in Kingfa Science Technology on September 4, 2025 and sell it today you would lose (32,290) from holding Kingfa Science Technology or give up 7.38% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Kingfa Science Technology  vs.  Blue Coast Hotels

 Performance 
       Timeline  
Kingfa Science Technology 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
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.
Blue Coast Hotels 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Blue Coast Hotels 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 somewhat strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

Kingfa Science and Blue Coast Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kingfa Science and Blue Coast

The main advantage of trading using opposite Kingfa Science and Blue Coast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingfa Science position performs unexpectedly, Blue Coast 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 Blue Coast will offset losses from the drop in Blue Coast's long position.
The idea behind Kingfa Science Technology and Blue Coast Hotels 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

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