Correlation Between Kandi Technologies and Cooper Stnd
Can any of the company-specific risk be diversified away by investing in both Kandi Technologies and Cooper Stnd 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 Cooper Stnd 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 Cooper Stnd, you can compare the effects of market volatilities on Kandi Technologies and Cooper Stnd 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 Cooper Stnd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and Cooper Stnd.
Diversification Opportunities for Kandi Technologies and Cooper Stnd
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kandi and Cooper is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and Cooper Stnd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cooper Stnd 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 Cooper Stnd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cooper Stnd has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and Cooper Stnd go up and down completely randomly.
Pair Corralation between Kandi Technologies and Cooper Stnd
Given the investment horizon of 90 days Kandi Technologies Group is expected to under-perform the Cooper Stnd. In addition to that, Kandi Technologies is 1.16 times more volatile than Cooper Stnd. It trades about -0.31 of its total potential returns per unit of risk. Cooper Stnd is currently generating about -0.09 per unit of volatility. If you would invest 1,673 in Cooper Stnd on September 12, 2024 and sell it today you would lose (124.00) from holding Cooper Stnd or give up 7.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kandi Technologies Group vs. Cooper Stnd
Performance |
| Timeline |
| Kandi Technologies |
| Cooper Stnd |
Kandi Technologies and Cooper Stnd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandi Technologies and Cooper Stnd
The main advantage of trading using opposite Kandi Technologies and Cooper Stnd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, Cooper Stnd 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 Cooper Stnd will offset losses from the drop in Cooper Stnd's long position.| Kandi Technologies vs. Cooper Stnd | Kandi Technologies vs. Motorcar Parts of | Kandi Technologies vs. American Axle Manufacturing | Kandi Technologies vs. Stoneridge |
| Cooper Stnd vs. Dorman Products | Cooper Stnd vs. Monro Muffler Brake | Cooper Stnd vs. Standard Motor Products | Cooper Stnd vs. Stoneridge |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |