Correlation Between Kandi Technologies and JD Sports
Can any of the company-specific risk be diversified away by investing in both Kandi Technologies and JD Sports 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 JD Sports 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 JD Sports Fashion, you can compare the effects of market volatilities on Kandi Technologies and JD Sports 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 JD Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and JD Sports.
Diversification Opportunities for Kandi Technologies and JD Sports
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kandi and JDSPY is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and JD Sports Fashion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Sports Fashion 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 JD Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Sports Fashion has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and JD Sports go up and down completely randomly.
Pair Corralation between Kandi Technologies and JD Sports
Given the investment horizon of 90 days Kandi Technologies Group is expected to generate 0.77 times more return on investment than JD Sports. However, Kandi Technologies Group is 1.3 times less risky than JD Sports. It trades about -0.03 of its potential returns per unit of risk. JD Sports Fashion is currently generating about -0.12 per unit of risk. If you would invest 130.00 in Kandi Technologies Group on September 1, 2024 and sell it today you would lose (7.00) from holding Kandi Technologies Group or give up 5.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kandi Technologies Group vs. JD Sports Fashion
Performance |
| Timeline |
| Kandi Technologies |
| JD Sports Fashion |
Kandi Technologies and JD Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandi Technologies and JD Sports
The main advantage of trading using opposite Kandi Technologies and JD Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, JD Sports 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 JD Sports will offset losses from the drop in JD Sports' long position.| Kandi Technologies vs. Hyliion Holdings Corp | Kandi Technologies vs. Foresight Autonomous Holdings | Kandi Technologies vs. Aeva Technologies | Kandi Technologies vs. Aeye Inc |
| JD Sports vs. Burlington Stores | JD Sports vs. Childrens Place | JD Sports vs. Buckle Inc | JD Sports vs. Shoe Carnival |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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