Correlation Between Kandi Technologies and Blink Charging
Can any of the company-specific risk be diversified away by investing in both Kandi Technologies and Blink Charging 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 Blink Charging 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 Blink Charging Co, you can compare the effects of market volatilities on Kandi Technologies and Blink Charging 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 Blink Charging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and Blink Charging.
Diversification Opportunities for Kandi Technologies and Blink Charging
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kandi and Blink is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and Blink Charging Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blink Charging 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 Blink Charging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blink Charging has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and Blink Charging go up and down completely randomly.
Pair Corralation between Kandi Technologies and Blink Charging
Given the investment horizon of 90 days Kandi Technologies Group is expected to generate 0.58 times more return on investment than Blink Charging. However, Kandi Technologies Group is 1.71 times less risky than Blink Charging. It trades about -0.03 of its potential returns per unit of risk. Blink Charging Co is currently generating about -0.06 per unit of risk. If you would invest 255.00 in Kandi Technologies Group on August 29, 2024 and sell it today you would lose (128.00) from holding Kandi Technologies Group or give up 50.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kandi Technologies Group vs. Blink Charging Co
Performance |
| Timeline |
| Kandi Technologies |
| Blink Charging |
Kandi Technologies and Blink Charging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandi Technologies and Blink Charging
The main advantage of trading using opposite Kandi Technologies and Blink Charging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, Blink Charging 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 Blink Charging will offset losses from the drop in Blink Charging's long position.| Kandi Technologies vs. Gentex | Kandi Technologies vs. Adient PLC | Kandi Technologies vs. Autoliv | Kandi Technologies vs. Fox Factory Holding |
| Blink Charging vs. Comfort Systems USA | Blink Charging vs. MasTec Inc | Blink Charging vs. EMCOR Group | Blink Charging vs. Granite Construction Incorporated |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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