Correlation Between Inflection Point and Kandi Technologies
Can any of the company-specific risk be diversified away by investing in both Inflection Point 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 Inflection Point and Kandi Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inflection Point Acquisition and Kandi Technologies Group, you can compare the effects of market volatilities on Inflection Point 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 Inflection Point with a short position of Kandi Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inflection Point and Kandi Technologies.
Diversification Opportunities for Inflection Point and Kandi Technologies
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Inflection and Kandi is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Inflection Point Acquisition and Kandi Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kandi Technologies and Inflection Point 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 Inflection Point Acquisition 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 Inflection Point i.e., Inflection Point and Kandi Technologies go up and down completely randomly.
Pair Corralation between Inflection Point and Kandi Technologies
Assuming the 90 days horizon Inflection Point Acquisition is expected to generate 16.93 times more return on investment than Kandi Technologies. However, Inflection Point is 16.93 times more volatile than Kandi Technologies Group. It trades about 0.05 of its potential returns per unit of risk. Kandi Technologies Group is currently generating about -0.03 per unit of risk. If you would invest 0.00 in Inflection Point Acquisition on September 2, 2024 and sell it today you would earn a total of 1,100 from holding Inflection Point Acquisition or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 77.42% |
| Values | Daily Returns |
Inflection Point Acquisition vs. Kandi Technologies Group
Performance |
| Timeline |
| Inflection Point Acq |
| Kandi Technologies |
Inflection Point and Kandi Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inflection Point and Kandi Technologies
The main advantage of trading using opposite Inflection Point and Kandi Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inflection Point 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.| Inflection Point vs. Kinsale Capital Group | Inflection Point vs. GoHealth | Inflection Point vs. Stratasys | Inflection Point vs. NI Holdings |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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