Correlation Between EastGroup Properties and Kandi Technologies
Can any of the company-specific risk be diversified away by investing in both EastGroup Properties 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 EastGroup Properties and Kandi Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EastGroup Properties and Kandi Technologies Group, you can compare the effects of market volatilities on EastGroup Properties 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 EastGroup Properties with a short position of Kandi Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of EastGroup Properties and Kandi Technologies.
Diversification Opportunities for EastGroup Properties and Kandi Technologies
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EastGroup and Kandi is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding EastGroup Properties and Kandi Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kandi Technologies and EastGroup Properties 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 EastGroup Properties 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 EastGroup Properties i.e., EastGroup Properties and Kandi Technologies go up and down completely randomly.
Pair Corralation between EastGroup Properties and Kandi Technologies
Considering the 90-day investment horizon EastGroup Properties is expected to generate 0.28 times more return on investment than Kandi Technologies. However, EastGroup Properties is 3.59 times less risky than Kandi Technologies. It trades about 0.06 of its potential returns per unit of risk. Kandi Technologies Group is currently generating about -0.08 per unit of risk. If you would invest 16,022 in EastGroup Properties on September 1, 2024 and sell it today you would earn a total of 1,199 from holding EastGroup Properties or generate 7.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EastGroup Properties vs. Kandi Technologies Group
Performance |
| Timeline |
| EastGroup Properties |
| Kandi Technologies |
EastGroup Properties and Kandi Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EastGroup Properties and Kandi Technologies
The main advantage of trading using opposite EastGroup Properties and Kandi Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EastGroup Properties 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.| EastGroup Properties vs. Terreno Realty | EastGroup Properties vs. Plymouth Industrial REIT | EastGroup Properties vs. LXP Industrial Trust | EastGroup Properties vs. First Industrial Realty |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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