Correlation Between Kandi Technologies and GENERAL
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By analyzing existing cross correlation between Kandi Technologies Group and GENERAL MTRS FINL, you can compare the effects of market volatilities on Kandi Technologies and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and GENERAL.
Diversification Opportunities for Kandi Technologies and GENERAL
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kandi and GENERAL is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and GENERAL MTRS FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL MTRS FINL 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL MTRS FINL has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and GENERAL go up and down completely randomly.
Pair Corralation between Kandi Technologies and GENERAL
Given the investment horizon of 90 days Kandi Technologies Group is expected to under-perform the GENERAL. In addition to that, Kandi Technologies is 8.87 times more volatile than GENERAL MTRS FINL. It trades about -0.27 of its total potential returns per unit of risk. GENERAL MTRS FINL is currently generating about -0.08 per unit of volatility. If you would invest 9,798 in GENERAL MTRS FINL on September 14, 2024 and sell it today you would lose (75.00) from holding GENERAL MTRS FINL or give up 0.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kandi Technologies Group vs. GENERAL MTRS FINL
Performance |
| Timeline |
| Kandi Technologies |
| GENERAL MTRS FINL |
Kandi Technologies and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandi Technologies and GENERAL
The main advantage of trading using opposite Kandi Technologies and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| Kandi Technologies vs. Ford Motor | Kandi Technologies vs. General Motors | Kandi Technologies vs. Goodyear Tire Rubber | Kandi Technologies vs. Li Auto |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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