Correlation Between Kandi Technologies and Xponential Fitness
Can any of the company-specific risk be diversified away by investing in both Kandi Technologies and Xponential Fitness 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 Xponential Fitness 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 Xponential Fitness, you can compare the effects of market volatilities on Kandi Technologies and Xponential Fitness 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 Xponential Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and Xponential Fitness.
Diversification Opportunities for Kandi Technologies and Xponential Fitness
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kandi and Xponential is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and Xponential Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xponential Fitness 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 Xponential Fitness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xponential Fitness has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and Xponential Fitness go up and down completely randomly.
Pair Corralation between Kandi Technologies and Xponential Fitness
Given the investment horizon of 90 days Kandi Technologies Group is expected to under-perform the Xponential Fitness. But the stock apears to be less risky and, when comparing its historical volatility, Kandi Technologies Group is 1.72 times less risky than Xponential Fitness. The stock trades about -0.03 of its potential returns per unit of risk. The Xponential Fitness is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,199 in Xponential Fitness on August 30, 2024 and sell it today you would lose (678.00) from holding Xponential Fitness or give up 30.83% 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. Xponential Fitness
Performance |
| Timeline |
| Kandi Technologies |
| Xponential Fitness |
Kandi Technologies and Xponential Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandi Technologies and Xponential Fitness
The main advantage of trading using opposite Kandi Technologies and Xponential Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, Xponential Fitness 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 Xponential Fitness will offset losses from the drop in Xponential Fitness' long position.| Kandi Technologies vs. Gentex | Kandi Technologies vs. Adient PLC | Kandi Technologies vs. Autoliv | Kandi Technologies vs. Fox Factory Holding |
| Xponential Fitness vs. Bowlero Corp | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp | Xponential Fitness vs. OneSpaWorld Holdings |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |