Correlation Between Kandi Technologies and Titan Machinery
Can any of the company-specific risk be diversified away by investing in both Kandi Technologies and Titan Machinery 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 Titan Machinery 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 Titan Machinery, you can compare the effects of market volatilities on Kandi Technologies and Titan Machinery 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 Titan Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and Titan Machinery.
Diversification Opportunities for Kandi Technologies and Titan Machinery
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kandi and Titan is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and Titan Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Titan Machinery 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 Titan Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Titan Machinery has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and Titan Machinery go up and down completely randomly.
Pair Corralation between Kandi Technologies and Titan Machinery
Given the investment horizon of 90 days Kandi Technologies Group is expected to under-perform the Titan Machinery. In addition to that, Kandi Technologies is 1.09 times more volatile than Titan Machinery. It trades about -0.09 of its total potential returns per unit of risk. Titan Machinery is currently generating about -0.05 per unit of volatility. If you would invest 2,881 in Titan Machinery on August 31, 2024 and sell it today you would lose (1,336) from holding Titan Machinery or give up 46.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kandi Technologies Group vs. Titan Machinery
Performance |
| Timeline |
| Kandi Technologies |
| Titan Machinery |
Kandi Technologies and Titan Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandi Technologies and Titan Machinery
The main advantage of trading using opposite Kandi Technologies and Titan Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, Titan Machinery 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 Titan Machinery will offset losses from the drop in Titan Machinery's long position.| Kandi Technologies vs. Hyliion Holdings Corp | Kandi Technologies vs. Foresight Autonomous Holdings | Kandi Technologies vs. Aeva Technologies | Kandi Technologies vs. Aeye Inc |
| Titan Machinery vs. DXP Enterprises | Titan Machinery vs. Watsco Inc | Titan Machinery vs. Distribution Solutions Group | Titan Machinery vs. SiteOne Landscape Supply |
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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