Correlation Between Kandi Technologies and 031162DD9

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Can any of the company-specific risk be diversified away by investing in both Kandi Technologies and 031162DD9 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 031162DD9 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 AMGN 3 22 FEB 29, you can compare the effects of market volatilities on Kandi Technologies and 031162DD9 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 031162DD9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and 031162DD9.

Diversification Opportunities for Kandi Technologies and 031162DD9

0.64
  Correlation Coefficient

Poor diversification

The 3 months correlation between Kandi and 031162DD9 is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and AMGN 3 22 FEB 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGN 3 22 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 031162DD9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMGN 3 22 has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and 031162DD9 go up and down completely randomly.

Pair Corralation between Kandi Technologies and 031162DD9

Given the investment horizon of 90 days Kandi Technologies Group is expected to under-perform the 031162DD9. In addition to that, Kandi Technologies is 6.41 times more volatile than AMGN 3 22 FEB 29. It trades about -0.1 of its total potential returns per unit of risk. AMGN 3 22 FEB 29 is currently generating about 0.0 per unit of volatility. If you would invest  9,030  in AMGN 3 22 FEB 29 on September 15, 2024 and sell it today you would earn a total of  8.00  from holding AMGN 3 22 FEB 29 or generate 0.09% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy97.4%
ValuesDaily Returns

Kandi Technologies Group  vs.  AMGN 3 22 FEB 29

 Performance 
       Timeline  
Kandi Technologies 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Kandi Technologies Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.
AMGN 3 22 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days AMGN 3 22 FEB 29 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 031162DD9 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Kandi Technologies and 031162DD9 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kandi Technologies and 031162DD9

The main advantage of trading using opposite Kandi Technologies and 031162DD9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, 031162DD9 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 031162DD9 will offset losses from the drop in 031162DD9's long position.
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The idea behind Kandi Technologies Group and AMGN 3 22 FEB 29 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

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