Correlation Between Kandi Technologies and Stallion Discoveries
Can any of the company-specific risk be diversified away by investing in both Kandi Technologies and Stallion Discoveries 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 Stallion Discoveries 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 Stallion Discoveries Corp, you can compare the effects of market volatilities on Kandi Technologies and Stallion Discoveries 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 Stallion Discoveries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and Stallion Discoveries.
Diversification Opportunities for Kandi Technologies and Stallion Discoveries
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kandi and Stallion is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and Stallion Discoveries Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stallion Discoveries Corp 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 Stallion Discoveries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stallion Discoveries Corp has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and Stallion Discoveries go up and down completely randomly.
Pair Corralation between Kandi Technologies and Stallion Discoveries
Given the investment horizon of 90 days Kandi Technologies Group is expected to under-perform the Stallion Discoveries. But the stock apears to be less risky and, when comparing its historical volatility, Kandi Technologies Group is 3.43 times less risky than Stallion Discoveries. The stock trades about -0.1 of its potential returns per unit of risk. The Stallion Discoveries Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 12.00 in Stallion Discoveries Corp on September 12, 2024 and sell it today you would lose (9.02) from holding Stallion Discoveries Corp or give up 75.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.7% |
| Values | Daily Returns |
Kandi Technologies Group vs. Stallion Discoveries Corp
Performance |
| Timeline |
| Kandi Technologies |
| Stallion Discoveries Corp |
Kandi Technologies and Stallion Discoveries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandi Technologies and Stallion Discoveries
The main advantage of trading using opposite Kandi Technologies and Stallion Discoveries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, Stallion Discoveries 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 Stallion Discoveries will offset losses from the drop in Stallion Discoveries' long position.| Kandi Technologies vs. Cooper Stnd | Kandi Technologies vs. Motorcar Parts of | Kandi Technologies vs. Stoneridge | Kandi Technologies vs. Dorman Products |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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