Correlation Between Kandi Technologies and Franklin Credit
Can any of the company-specific risk be diversified away by investing in both Kandi Technologies and Franklin Credit 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 Franklin Credit 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 Franklin Credit Management, you can compare the effects of market volatilities on Kandi Technologies and Franklin Credit 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 Franklin Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and Franklin Credit.
Diversification Opportunities for Kandi Technologies and Franklin Credit
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kandi and Franklin is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and Franklin Credit Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Credit Mana 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 Franklin Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Credit Mana has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and Franklin Credit go up and down completely randomly.
Pair Corralation between Kandi Technologies and Franklin Credit
Given the investment horizon of 90 days Kandi Technologies Group is expected to generate 0.84 times more return on investment than Franklin Credit. However, Kandi Technologies Group is 1.19 times less risky than Franklin Credit. It trades about -0.05 of its potential returns per unit of risk. Franklin Credit Management is currently generating about -0.11 per unit of risk. If you would invest 132.00 in Kandi Technologies Group on September 2, 2024 and sell it today you would lose (9.00) from holding Kandi Technologies Group or give up 6.82% 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. Franklin Credit Management
Performance |
| Timeline |
| Kandi Technologies |
| Franklin Credit Mana |
Kandi Technologies and Franklin Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandi Technologies and Franklin Credit
The main advantage of trading using opposite Kandi Technologies and Franklin Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, Franklin Credit 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 Franklin Credit will offset losses from the drop in Franklin Credit's long position.| Kandi Technologies vs. Hyliion Holdings Corp | Kandi Technologies vs. Foresight Autonomous Holdings | Kandi Technologies vs. Aeva Technologies | Kandi Technologies vs. Aeye Inc |
| Franklin Credit vs. Global Healthcare REIT | Franklin Credit vs. Freedom Bank of | Franklin Credit vs. Hinto Energy | Franklin Credit vs. Ensurge |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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