Correlation Between Kandi Technologies and Aurania Resources
Can any of the company-specific risk be diversified away by investing in both Kandi Technologies and Aurania Resources 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 Aurania Resources 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 Aurania Resources, you can compare the effects of market volatilities on Kandi Technologies and Aurania Resources 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 Aurania Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and Aurania Resources.
Diversification Opportunities for Kandi Technologies and Aurania Resources
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kandi and Aurania is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and Aurania Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurania Resources 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 Aurania Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurania Resources has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and Aurania Resources go up and down completely randomly.
Pair Corralation between Kandi Technologies and Aurania Resources
Given the investment horizon of 90 days Kandi Technologies Group is expected to generate 0.88 times more return on investment than Aurania Resources. However, Kandi Technologies Group is 1.14 times less risky than Aurania Resources. It trades about -0.01 of its potential returns per unit of risk. Aurania Resources is currently generating about -0.38 per unit of risk. If you would invest 127.00 in Kandi Technologies Group on September 3, 2024 and sell it today you would lose (4.00) from holding Kandi Technologies Group or give up 3.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kandi Technologies Group vs. Aurania Resources
Performance |
| Timeline |
| Kandi Technologies |
| Aurania Resources |
Kandi Technologies and Aurania Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandi Technologies and Aurania Resources
The main advantage of trading using opposite Kandi Technologies and Aurania Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, Aurania Resources 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 Aurania Resources will offset losses from the drop in Aurania Resources' long position.| Kandi Technologies vs. Hyliion Holdings Corp | Kandi Technologies vs. Foresight Autonomous Holdings | Kandi Technologies vs. Aeva Technologies | Kandi Technologies vs. Aeye Inc |
| Aurania Resources vs. Summit Materials | Aurania Resources vs. Kandi Technologies Group | Aurania Resources vs. Reservoir Media | Aurania Resources vs. WiMi Hologram Cloud |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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