Correlation Between Electrovaya Common and Kandi Technologies
Can any of the company-specific risk be diversified away by investing in both Electrovaya Common 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 Electrovaya Common and Kandi Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electrovaya Common Shares and Kandi Technologies Group, you can compare the effects of market volatilities on Electrovaya Common 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 Electrovaya Common with a short position of Kandi Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrovaya Common and Kandi Technologies.
Diversification Opportunities for Electrovaya Common and Kandi Technologies
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Electrovaya and Kandi is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Electrovaya Common Shares and Kandi Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kandi Technologies and Electrovaya Common 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 Electrovaya Common Shares 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 Electrovaya Common i.e., Electrovaya Common and Kandi Technologies go up and down completely randomly.
Pair Corralation between Electrovaya Common and Kandi Technologies
Given the investment horizon of 90 days Electrovaya Common Shares is expected to generate 1.02 times more return on investment than Kandi Technologies. However, Electrovaya Common is 1.02 times more volatile than Kandi Technologies Group. It trades about 0.01 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 293.00 in Electrovaya Common Shares on September 3, 2024 and sell it today you would lose (25.00) from holding Electrovaya Common Shares or give up 8.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electrovaya Common Shares vs. Kandi Technologies Group
Performance |
| Timeline |
| Electrovaya Common Shares |
| Kandi Technologies |
Electrovaya Common and Kandi Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrovaya Common and Kandi Technologies
The main advantage of trading using opposite Electrovaya Common and Kandi Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrovaya Common 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.| Electrovaya Common vs. Bloom Energy Corp | Electrovaya Common vs. Elong Power Holding | Electrovaya Common vs. Enovix Corp | Electrovaya Common vs. Sunrise New Energy |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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