Correlation Between Kandi Technologies and Marine Products
Can any of the company-specific risk be diversified away by investing in both Kandi Technologies and Marine Products 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 Marine Products 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 Marine Products, you can compare the effects of market volatilities on Kandi Technologies and Marine Products 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 Marine Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and Marine Products.
Diversification Opportunities for Kandi Technologies and Marine Products
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kandi and Marine is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and Marine Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marine Products 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 Marine Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marine Products has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and Marine Products go up and down completely randomly.
Pair Corralation between Kandi Technologies and Marine Products
Given the investment horizon of 90 days Kandi Technologies Group is expected to generate 2.14 times more return on investment than Marine Products. However, Kandi Technologies is 2.14 times more volatile than Marine Products. It trades about -0.01 of its potential returns per unit of risk. Marine Products is currently generating about -0.02 per unit of risk. If you would invest 207.00 in Kandi Technologies Group on November 28, 2024 and sell it today you would lose (44.00) from holding Kandi Technologies Group or give up 21.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kandi Technologies Group vs. Marine Products
Performance |
| Timeline |
| Kandi Technologies |
| Marine Products |
Kandi Technologies and Marine Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandi Technologies and Marine Products
The main advantage of trading using opposite Kandi Technologies and Marine Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, Marine Products 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 Marine Products will offset losses from the drop in Marine Products' 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 |
| Marine Products vs. Thor Industries | Marine Products vs. BRP Inc | Marine Products vs. Brunswick | Marine Products vs. EZGO Technologies |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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