Correlation Between Franklin Credit and Kandi Technologies
Can any of the company-specific risk be diversified away by investing in both Franklin Credit 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 Franklin Credit and Kandi Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Credit Management and Kandi Technologies Group, you can compare the effects of market volatilities on Franklin Credit 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 Franklin Credit with a short position of Kandi Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Credit and Kandi Technologies.
Diversification Opportunities for Franklin Credit and Kandi Technologies
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Franklin and Kandi is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Credit Management and Kandi Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kandi Technologies and Franklin Credit 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 Franklin Credit Management 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 Franklin Credit i.e., Franklin Credit and Kandi Technologies go up and down completely randomly.
Pair Corralation between Franklin Credit and Kandi Technologies
Given the investment horizon of 90 days Franklin Credit Management is expected to under-perform the Kandi Technologies. In addition to that, Franklin Credit is 1.19 times more volatile than Kandi Technologies Group. It trades about -0.11 of its total potential returns per unit of risk. Kandi Technologies Group is currently generating about -0.05 per unit of volatility. If you would invest 132.00 in Kandi Technologies Group on September 2, 2024 and sell it today you would lose (9.00) from holding Kandi Technologies Group or give up 6.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Credit Management vs. Kandi Technologies Group
Performance |
| Timeline |
| Franklin Credit Mana |
| Kandi Technologies |
Franklin Credit and Kandi Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Credit and Kandi Technologies
The main advantage of trading using opposite Franklin Credit and Kandi Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Credit 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.| Franklin Credit vs. Global Healthcare REIT | Franklin Credit vs. Freedom Bank of | Franklin Credit vs. Hinto Energy | Franklin Credit vs. Ensurge |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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