Correlation Between Kandi Technologies and Gentex
Can any of the company-specific risk be diversified away by investing in both Kandi Technologies and Gentex 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 Gentex 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 Gentex, you can compare the effects of market volatilities on Kandi Technologies and Gentex 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 Gentex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and Gentex.
Diversification Opportunities for Kandi Technologies and Gentex
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kandi and Gentex is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and Gentex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentex 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 Gentex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gentex has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and Gentex go up and down completely randomly.
Pair Corralation between Kandi Technologies and Gentex
Given the investment horizon of 90 days Kandi Technologies Group is expected to under-perform the Gentex. In addition to that, Kandi Technologies is 3.19 times more volatile than Gentex. It trades about -0.08 of its total potential returns per unit of risk. Gentex is currently generating about 0.02 per unit of volatility. If you would invest 3,066 in Gentex on August 28, 2024 and sell it today you would earn a total of 42.00 from holding Gentex or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kandi Technologies Group vs. Gentex
Performance |
| Timeline |
| Kandi Technologies |
| Gentex |
Kandi Technologies and Gentex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandi Technologies and Gentex
The main advantage of trading using opposite Kandi Technologies and Gentex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, Gentex 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 Gentex will offset losses from the drop in Gentex'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 |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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