Correlation Between Kandi Technologies and Asure Software
Can any of the company-specific risk be diversified away by investing in both Kandi Technologies and Asure Software 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 Asure Software 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 Asure Software, you can compare the effects of market volatilities on Kandi Technologies and Asure Software 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 Asure Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and Asure Software.
Diversification Opportunities for Kandi Technologies and Asure Software
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kandi and Asure is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and Asure Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asure Software 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 Asure Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asure Software has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and Asure Software go up and down completely randomly.
Pair Corralation between Kandi Technologies and Asure Software
Given the investment horizon of 90 days Kandi Technologies Group is expected to generate 2.7 times more return on investment than Asure Software. However, Kandi Technologies is 2.7 times more volatile than Asure Software. It trades about 0.3 of its potential returns per unit of risk. Asure Software is currently generating about -0.2 per unit of risk. If you would invest 116.00 in Kandi Technologies Group on November 28, 2024 and sell it today you would earn a total of 40.00 from holding Kandi Technologies Group or generate 34.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kandi Technologies Group vs. Asure Software
Performance |
| Timeline |
| Kandi Technologies |
| Asure Software |
Kandi Technologies and Asure Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandi Technologies and Asure Software
The main advantage of trading using opposite Kandi Technologies and Asure Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, Asure Software 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 Asure Software will offset losses from the drop in Asure Software's long position.| Kandi Technologies vs. Hyliion Holdings Corp | Kandi Technologies vs. Foresight Autonomous Holdings | Kandi Technologies vs. Aeva Technologies, Common | Kandi Technologies vs. Aeye Inc |
| Asure Software vs. Alkami Technology | Asure Software vs. Blackbaud | Asure Software vs. Enfusion | Asure Software vs. Clearwater Analytics Holdings |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |