Correlation Between Kandi Technologies and Inflection Point
Can any of the company-specific risk be diversified away by investing in both Kandi Technologies and Inflection Point 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 Inflection Point 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 Inflection Point Acquisition, you can compare the effects of market volatilities on Kandi Technologies and Inflection Point 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 Inflection Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and Inflection Point.
Diversification Opportunities for Kandi Technologies and Inflection Point
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kandi and Inflection is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and Inflection Point Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflection Point Acq 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 Inflection Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflection Point Acq has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and Inflection Point go up and down completely randomly.
Pair Corralation between Kandi Technologies and Inflection Point
Given the investment horizon of 90 days Kandi Technologies Group is expected to under-perform the Inflection Point. But the stock apears to be less risky and, when comparing its historical volatility, Kandi Technologies Group is 16.93 times less risky than Inflection Point. The stock trades about -0.03 of its potential returns per unit of risk. The Inflection Point Acquisition is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Inflection Point Acquisition on September 2, 2024 and sell it today you would earn a total of 1,100 from holding Inflection Point Acquisition or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 77.42% |
| Values | Daily Returns |
Kandi Technologies Group vs. Inflection Point Acquisition
Performance |
| Timeline |
| Kandi Technologies |
| Inflection Point Acq |
Kandi Technologies and Inflection Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandi Technologies and Inflection Point
The main advantage of trading using opposite Kandi Technologies and Inflection Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, Inflection Point 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 Inflection Point will offset losses from the drop in Inflection Point'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 |
| Inflection Point vs. Kinsale Capital Group | Inflection Point vs. GoHealth | Inflection Point vs. Stratasys | Inflection Point vs. NI Holdings |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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