Correlation Between Kandi Technologies and Sweetgreen
Can any of the company-specific risk be diversified away by investing in both Kandi Technologies and Sweetgreen 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 Sweetgreen 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 Sweetgreen, you can compare the effects of market volatilities on Kandi Technologies and Sweetgreen 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 Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and Sweetgreen.
Diversification Opportunities for Kandi Technologies and Sweetgreen
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kandi and Sweetgreen is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen 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 Sweetgreen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sweetgreen has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and Sweetgreen go up and down completely randomly.
Pair Corralation between Kandi Technologies and Sweetgreen
Given the investment horizon of 90 days Kandi Technologies Group is expected to under-perform the Sweetgreen. But the stock apears to be less risky and, when comparing its historical volatility, Kandi Technologies Group is 1.65 times less risky than Sweetgreen. The stock trades about -0.11 of its potential returns per unit of risk. The Sweetgreen is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,526 in Sweetgreen on September 12, 2024 and sell it today you would earn a total of 2,134 from holding Sweetgreen or generate 139.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kandi Technologies Group vs. Sweetgreen
Performance |
| Timeline |
| Kandi Technologies |
| Sweetgreen |
Kandi Technologies and Sweetgreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandi Technologies and Sweetgreen
The main advantage of trading using opposite Kandi Technologies and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, Sweetgreen 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 Sweetgreen will offset losses from the drop in Sweetgreen's long position.| Kandi Technologies vs. Cooper Stnd | Kandi Technologies vs. Motorcar Parts of | Kandi Technologies vs. American Axle Manufacturing | Kandi Technologies vs. Stoneridge |
| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari 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 CEOs Directory module to screen CEOs from public companies around the world.
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