Correlation Between Kandi Technologies and Jeld Wen
Can any of the company-specific risk be diversified away by investing in both Kandi Technologies and Jeld Wen 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 Jeld Wen 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 Jeld Wen Holding, you can compare the effects of market volatilities on Kandi Technologies and Jeld Wen 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 Jeld Wen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and Jeld Wen.
Diversification Opportunities for Kandi Technologies and Jeld Wen
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kandi and Jeld is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and Jeld Wen Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeld Wen Holding 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 Jeld Wen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeld Wen Holding has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and Jeld Wen go up and down completely randomly.
Pair Corralation between Kandi Technologies and Jeld Wen
Given the investment horizon of 90 days Kandi Technologies Group is expected to under-perform the Jeld Wen. In addition to that, Kandi Technologies is 1.02 times more volatile than Jeld Wen Holding. It trades about -0.09 of its total potential returns per unit of risk. Jeld Wen Holding is currently generating about -0.04 per unit of volatility. If you would invest 1,501 in Jeld Wen Holding on September 2, 2024 and sell it today you would lose (412.00) from holding Jeld Wen Holding or give up 27.45% 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. Jeld Wen Holding
Performance |
| Timeline |
| Kandi Technologies |
| Jeld Wen Holding |
Kandi Technologies and Jeld Wen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandi Technologies and Jeld Wen
The main advantage of trading using opposite Kandi Technologies and Jeld Wen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, Jeld Wen 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 Jeld Wen will offset losses from the drop in Jeld Wen'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 |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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