Correlation Between Kandi Technologies and Aeries Technology
Can any of the company-specific risk be diversified away by investing in both Kandi Technologies and Aeries Technology 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 Kandi Technologies and Aeries Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kandi Technologies Group and Aeries Technology, you can compare the effects of market volatilities on Kandi Technologies and Aeries Technology 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 Kandi Technologies with a short position of Aeries Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and Aeries Technology.
Diversification Opportunities for Kandi Technologies and Aeries Technology
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kandi and Aeries is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and Aeries Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeries Technology and Kandi Technologies 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 Kandi Technologies Group are associated (or correlated) with Aeries Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeries Technology has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and Aeries Technology go up and down completely randomly.
Pair Corralation between Kandi Technologies and Aeries Technology
Given the investment horizon of 90 days Kandi Technologies Group is expected to generate 0.58 times more return on investment than Aeries Technology. However, Kandi Technologies Group is 1.74 times less risky than Aeries Technology. It trades about -0.04 of its potential returns per unit of risk. Aeries Technology is currently generating about -0.07 per unit of risk. If you would invest 225.00 in Kandi Technologies Group on September 14, 2024 and sell it today you would lose (126.00) from holding Kandi Technologies Group or give up 56.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Kandi Technologies Group vs. Aeries Technology
Performance |
| Timeline |
| Kandi Technologies |
| Aeries Technology |
Kandi Technologies and Aeries Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandi Technologies and Aeries Technology
The main advantage of trading using opposite Kandi Technologies and Aeries Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, Aeries Technology 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 Aeries Technology will offset losses from the drop in Aeries Technology's long position.| Kandi Technologies vs. Ford Motor | Kandi Technologies vs. General Motors | Kandi Technologies vs. Goodyear Tire Rubber | Kandi Technologies vs. Li Auto |
| Aeries Technology vs. Harmony Gold Mining | Aeries Technology vs. Anterix | Aeries Technology vs. Kandi Technologies Group | Aeries Technology vs. Perseus Mining Limited |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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