Correlation Between Kandi Technologies and SunLink Health
Can any of the company-specific risk be diversified away by investing in both Kandi Technologies and SunLink Health 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 SunLink Health 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 SunLink Health Systems, you can compare the effects of market volatilities on Kandi Technologies and SunLink Health 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 SunLink Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and SunLink Health.
Diversification Opportunities for Kandi Technologies and SunLink Health
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kandi and SunLink is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and SunLink Health Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunLink Health Systems 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 SunLink Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunLink Health Systems has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and SunLink Health go up and down completely randomly.
Pair Corralation between Kandi Technologies and SunLink Health
Given the investment horizon of 90 days Kandi Technologies Group is expected to generate 1.22 times more return on investment than SunLink Health. However, Kandi Technologies is 1.22 times more volatile than SunLink Health Systems. It trades about -0.1 of its potential returns per unit of risk. SunLink Health Systems is currently generating about -0.16 per unit of risk. If you would invest 144.00 in Kandi Technologies Group on August 30, 2024 and sell it today you would lose (18.00) from holding Kandi Technologies Group or give up 12.5% 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. SunLink Health Systems
Performance |
| Timeline |
| Kandi Technologies |
| SunLink Health Systems |
Kandi Technologies and SunLink Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandi Technologies and SunLink Health
The main advantage of trading using opposite Kandi Technologies and SunLink Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, SunLink Health 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 SunLink Health will offset losses from the drop in SunLink Health's long position.| Kandi Technologies vs. Gentex | Kandi Technologies vs. Adient PLC | Kandi Technologies vs. Autoliv | Kandi Technologies vs. Fox Factory Holding |
| SunLink Health vs. Leafly Holdings | SunLink Health vs. Allstar Health Brands | SunLink Health vs. Leafly Holdings | SunLink Health vs. Kiaro Holdings Corp |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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