Correlation Between Kandi Technologies and Gogo
Can any of the company-specific risk be diversified away by investing in both Kandi Technologies and Gogo 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 Gogo 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 Gogo Inc, you can compare the effects of market volatilities on Kandi Technologies and Gogo 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 Gogo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and Gogo.
Diversification Opportunities for Kandi Technologies and Gogo
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kandi and Gogo is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and Gogo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gogo Inc 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 Gogo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gogo Inc has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and Gogo go up and down completely randomly.
Pair Corralation between Kandi Technologies and Gogo
Given the investment horizon of 90 days Kandi Technologies Group is expected to under-perform the Gogo. In addition to that, Kandi Technologies is 1.03 times more volatile than Gogo Inc. It trades about -0.03 of its total potential returns per unit of risk. Gogo Inc is currently generating about -0.02 per unit of volatility. If you would invest 1,547 in Gogo Inc on November 9, 2024 and sell it today you would lose (715.00) from holding Gogo Inc or give up 46.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kandi Technologies Group vs. Gogo Inc
Performance |
| Timeline |
| Kandi Technologies |
| Gogo Inc |
Kandi Technologies and Gogo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandi Technologies and Gogo
The main advantage of trading using opposite Kandi Technologies and Gogo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, Gogo 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 Gogo will offset losses from the drop in Gogo's long position.| Kandi Technologies vs. Hyliion Holdings Corp | Kandi Technologies vs. Foresight Autonomous Holdings | Kandi Technologies vs. Aeva Technologies, Common | Kandi Technologies vs. Aeye Inc |
| Gogo vs. Digital Ally | Gogo vs. Kandi Technologies Group | Gogo vs. Yelp Inc | Gogo vs. National Beverage Corp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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