Correlation Between Kandi Technologies and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Kandi Technologies and Ainsworth Game 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 Ainsworth Game 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 Ainsworth Game Technology, you can compare the effects of market volatilities on Kandi Technologies and Ainsworth Game 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 Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and Ainsworth Game.
Diversification Opportunities for Kandi Technologies and Ainsworth Game
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kandi and Ainsworth is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and Ainsworth Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainsworth Game 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 Ainsworth Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ainsworth Game Technology has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and Ainsworth Game go up and down completely randomly.
Pair Corralation between Kandi Technologies and Ainsworth Game
Given the investment horizon of 90 days Kandi Technologies Group is expected to under-perform the Ainsworth Game. In addition to that, Kandi Technologies is 1.2 times more volatile than Ainsworth Game Technology. It trades about -0.1 of its total potential returns per unit of risk. Ainsworth Game Technology is currently generating about -0.07 per unit of volatility. If you would invest 79.00 in Ainsworth Game Technology on August 24, 2024 and sell it today you would lose (33.00) from holding Ainsworth Game Technology or give up 41.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Kandi Technologies Group vs. Ainsworth Game Technology
Performance |
| Timeline |
| Kandi Technologies |
| Ainsworth Game Technology |
Kandi Technologies and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandi Technologies and Ainsworth Game
The main advantage of trading using opposite Kandi Technologies and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, Ainsworth Game 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 Ainsworth Game will offset losses from the drop in Ainsworth Game's long position.| Kandi Technologies vs. Hyliion Holdings Corp | Kandi Technologies vs. Foresight Autonomous Holdings | Kandi Technologies vs. Aeva Technologies | Kandi Technologies vs. Aeye Inc |
| Ainsworth Game vs. Real Luck Group | Ainsworth Game vs. Betmakers Technology Group | Ainsworth Game vs. Jackpot Digital |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |