Correlation Between Blink Charging and Kandi Technologies
Can any of the company-specific risk be diversified away by investing in both Blink Charging 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 Blink Charging and Kandi Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blink Charging Co and Kandi Technologies Group, you can compare the effects of market volatilities on Blink Charging 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 Blink Charging with a short position of Kandi Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blink Charging and Kandi Technologies.
Diversification Opportunities for Blink Charging and Kandi Technologies
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Blink and Kandi is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Blink Charging Co and Kandi Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kandi Technologies and Blink Charging 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 Blink Charging Co 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 Blink Charging i.e., Blink Charging and Kandi Technologies go up and down completely randomly.
Pair Corralation between Blink Charging and Kandi Technologies
Given the investment horizon of 90 days Blink Charging Co is expected to under-perform the Kandi Technologies. In addition to that, Blink Charging is 1.28 times more volatile than Kandi Technologies Group. It trades about -0.16 of its total potential returns per unit of risk. Kandi Technologies Group is currently generating about -0.03 per unit of volatility. If you would invest 130.00 in Kandi Technologies Group on September 1, 2024 and sell it today you would lose (7.00) from holding Kandi Technologies Group or give up 5.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blink Charging Co vs. Kandi Technologies Group
Performance |
| Timeline |
| Blink Charging |
| Kandi Technologies |
Blink Charging and Kandi Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blink Charging and Kandi Technologies
The main advantage of trading using opposite Blink Charging and Kandi Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blink Charging 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.| Blink Charging vs. Comfort Systems USA | Blink Charging vs. MasTec Inc | Blink Charging vs. EMCOR Group | Blink Charging vs. Granite Construction Incorporated |
| Kandi Technologies vs. Hyliion Holdings Corp | Kandi Technologies vs. Foresight Autonomous Holdings | Kandi Technologies vs. Aeva Technologies | Kandi Technologies vs. Aeye Inc |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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