Correlation Between Kandi Technologies and Gap,
Can any of the company-specific risk be diversified away by investing in both Kandi Technologies and Gap, 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 Gap, 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 The Gap,, you can compare the effects of market volatilities on Kandi Technologies and Gap, 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 Gap,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and Gap,.
Diversification Opportunities for Kandi Technologies and Gap,
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kandi and Gap, is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and The Gap, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gap, 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 Gap,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gap, has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and Gap, go up and down completely randomly.
Pair Corralation between Kandi Technologies and Gap,
Given the investment horizon of 90 days Kandi Technologies Group is expected to under-perform the Gap,. But the stock apears to be less risky and, when comparing its historical volatility, Kandi Technologies Group is 1.16 times less risky than Gap,. The stock trades about -0.03 of its potential returns per unit of risk. The The Gap, is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,276 in The Gap, on September 3, 2024 and sell it today you would earn a total of 1,149 from holding The Gap, or generate 90.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kandi Technologies Group vs. The Gap,
Performance |
| Timeline |
| Kandi Technologies |
| Gap, |
Kandi Technologies and Gap, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandi Technologies and Gap,
The main advantage of trading using opposite Kandi Technologies and Gap, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, Gap, 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 Gap, will offset losses from the drop in Gap,'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 |
| Gap, vs. Centessa Pharmaceuticals PLC | Gap, vs. Kandi Technologies Group | Gap, vs. Digi International | Gap, vs. Reservoir Media |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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