Correlation Between Kandi Technologies and Veren
Can any of the company-specific risk be diversified away by investing in both Kandi Technologies and Veren 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 Veren 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 Veren Inc, you can compare the effects of market volatilities on Kandi Technologies and Veren 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 Veren. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and Veren.
Diversification Opportunities for Kandi Technologies and Veren
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kandi and Veren is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and Veren Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veren Inc 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 Veren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veren Inc has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and Veren go up and down completely randomly.
Pair Corralation between Kandi Technologies and Veren
Given the investment horizon of 90 days Kandi Technologies Group is expected to under-perform the Veren. In addition to that, Kandi Technologies is 2.18 times more volatile than Veren Inc. It trades about -0.31 of its total potential returns per unit of risk. Veren Inc is currently generating about -0.13 per unit of volatility. If you would invest 521.00 in Veren Inc on September 12, 2024 and sell it today you would lose (26.00) from holding Veren Inc or give up 4.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kandi Technologies Group vs. Veren Inc
Performance |
| Timeline |
| Kandi Technologies |
| Veren Inc |
Kandi Technologies and Veren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandi Technologies and Veren
The main advantage of trading using opposite Kandi Technologies and Veren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, Veren 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 Veren will offset losses from the drop in Veren's long position.| Kandi Technologies vs. Cooper Stnd | Kandi Technologies vs. Motorcar Parts of | Kandi Technologies vs. American Axle Manufacturing | Kandi Technologies vs. Stoneridge |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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