Correlation Between Kandi Technologies and Constellation Brands
Can any of the company-specific risk be diversified away by investing in both Kandi Technologies and Constellation Brands 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 Constellation Brands 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 Constellation Brands Class, you can compare the effects of market volatilities on Kandi Technologies and Constellation Brands 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 Constellation Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and Constellation Brands.
Diversification Opportunities for Kandi Technologies and Constellation Brands
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kandi and Constellation is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and Constellation Brands Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Constellation Brands 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 Constellation Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Constellation Brands has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and Constellation Brands go up and down completely randomly.
Pair Corralation between Kandi Technologies and Constellation Brands
Given the investment horizon of 90 days Kandi Technologies Group is expected to under-perform the Constellation Brands. In addition to that, Kandi Technologies is 2.52 times more volatile than Constellation Brands Class. It trades about -0.04 of its total potential returns per unit of risk. Constellation Brands Class is currently generating about 0.03 per unit of volatility. If you would invest 20,904 in Constellation Brands Class on August 31, 2024 and sell it today you would earn a total of 3,191 from holding Constellation Brands Class or generate 15.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kandi Technologies Group vs. Constellation Brands Class
Performance |
| Timeline |
| Kandi Technologies |
| Constellation Brands |
Kandi Technologies and Constellation Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandi Technologies and Constellation Brands
The main advantage of trading using opposite Kandi Technologies and Constellation Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, Constellation Brands 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 Constellation Brands will offset losses from the drop in Constellation Brands' long position.| Kandi Technologies vs. Hyliion Holdings Corp | Kandi Technologies vs. Foresight Autonomous Holdings | Kandi Technologies vs. Aeva Technologies | Kandi Technologies vs. Aeye Inc |
| Constellation Brands vs. Brown Forman | Constellation Brands vs. Duckhorn Portfolio | Constellation Brands vs. MGP Ingredients | Constellation Brands vs. Brown Forman |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |