Correlation Between Aldel Financial and Kandi Technologies
Can any of the company-specific risk be diversified away by investing in both Aldel Financial and Kandi Technologies 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 Aldel Financial and Kandi Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aldel Financial II and Kandi Technologies Group, you can compare the effects of market volatilities on Aldel Financial and Kandi Technologies 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 Aldel Financial with a short position of Kandi Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aldel Financial and Kandi Technologies.
Diversification Opportunities for Aldel Financial and Kandi Technologies
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aldel and Kandi is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Aldel Financial II and Kandi Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kandi Technologies and Aldel Financial 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 Aldel Financial II are associated (or correlated) with Kandi Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kandi Technologies has no effect on the direction of Aldel Financial i.e., Aldel Financial and Kandi Technologies go up and down completely randomly.
Pair Corralation between Aldel Financial and Kandi Technologies
Assuming the 90 days horizon Aldel Financial II is expected to generate 0.04 times more return on investment than Kandi Technologies. However, Aldel Financial II is 27.34 times less risky than Kandi Technologies. It trades about 0.0 of its potential returns per unit of risk. Kandi Technologies Group is currently generating about -0.03 per unit of risk. If you would invest 999.00 in Aldel Financial II on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Aldel Financial II or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.45% |
| Values | Daily Returns |
Aldel Financial II vs. Kandi Technologies Group
Performance |
| Timeline |
| Aldel Financial II |
| Kandi Technologies |
Aldel Financial and Kandi Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aldel Financial and Kandi Technologies
The main advantage of trading using opposite Aldel Financial and Kandi Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aldel Financial position performs unexpectedly, Kandi Technologies 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 Kandi Technologies will offset losses from the drop in Kandi Technologies' long position.| Aldel Financial vs. Distoken Acquisition | Aldel Financial vs. Voyager Acquisition Corp | Aldel Financial vs. dMY Squared Technology | Aldel Financial vs. YHN Acquisition I |
| Kandi Technologies vs. Gentex | Kandi Technologies vs. Adient PLC | Kandi Technologies vs. Autoliv | Kandi Technologies vs. Fox Factory Holding |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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