Correlation Between Consol Energy and Kandi Technologies
Can any of the company-specific risk be diversified away by investing in both Consol Energy 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 Consol Energy and Kandi Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Consol Energy and Kandi Technologies Group, you can compare the effects of market volatilities on Consol Energy 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 Consol Energy with a short position of Kandi Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consol Energy and Kandi Technologies.
Diversification Opportunities for Consol Energy and Kandi Technologies
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Consol and Kandi is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Consol Energy and Kandi Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kandi Technologies and Consol Energy 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 Consol Energy 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 Consol Energy i.e., Consol Energy and Kandi Technologies go up and down completely randomly.
Pair Corralation between Consol Energy and Kandi Technologies
Given the investment horizon of 90 days Consol Energy is expected to generate 0.64 times more return on investment than Kandi Technologies. However, Consol Energy is 1.55 times less risky than Kandi Technologies. It trades about 0.11 of its potential returns per unit of risk. Kandi Technologies Group is currently generating about -0.07 per unit of risk. If you would invest 9,853 in Consol Energy on August 28, 2024 and sell it today you would earn a total of 3,480 from holding Consol Energy or generate 35.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Consol Energy vs. Kandi Technologies Group
Performance |
| Timeline |
| Consol Energy |
| Kandi Technologies |
Consol Energy and Kandi Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consol Energy and Kandi Technologies
The main advantage of trading using opposite Consol Energy and Kandi Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consol Energy 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.| Consol Energy vs. Alliance Resource Partners | Consol Energy vs. Natural Resource Partners | Consol Energy vs. Hallador Energy | Consol Energy vs. NACCO Industries |
| 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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