Correlation Between Kandi Technologies and Celsius Holdings
Can any of the company-specific risk be diversified away by investing in both Kandi Technologies and Celsius Holdings 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 Celsius Holdings 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 Celsius Holdings, you can compare the effects of market volatilities on Kandi Technologies and Celsius Holdings 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 Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and Celsius Holdings.
Diversification Opportunities for Kandi Technologies and Celsius Holdings
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kandi and Celsius is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings 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 Celsius Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celsius Holdings has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and Celsius Holdings go up and down completely randomly.
Pair Corralation between Kandi Technologies and Celsius Holdings
Given the investment horizon of 90 days Kandi Technologies Group is expected to under-perform the Celsius Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Kandi Technologies Group is 1.23 times less risky than Celsius Holdings. The stock trades about -0.04 of its potential returns per unit of risk. The Celsius Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,256 in Celsius Holdings on August 31, 2024 and sell it today you would lose (411.00) from holding Celsius Holdings or give up 12.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kandi Technologies Group vs. Celsius Holdings
Performance |
| Timeline |
| Kandi Technologies |
| Celsius Holdings |
Kandi Technologies and Celsius Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandi Technologies and Celsius Holdings
The main advantage of trading using opposite Kandi Technologies and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, Celsius Holdings 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 Celsius Holdings will offset losses from the drop in Celsius Holdings' long position.| Kandi Technologies vs. Hyliion Holdings Corp | Kandi Technologies vs. Foresight Autonomous Holdings | Kandi Technologies vs. Aeva Technologies | Kandi Technologies vs. Aeye Inc |
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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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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