Correlation Between APPLIED and Kandi Technologies
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By analyzing existing cross correlation between APPLIED MATLS INC and Kandi Technologies Group, you can compare the effects of market volatilities on APPLIED and Kandi Technologies 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 APPLIED with a short position of Kandi Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of APPLIED and Kandi Technologies.
Diversification Opportunities for APPLIED and Kandi Technologies
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between APPLIED and Kandi is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding APPLIED MATLS INC and Kandi Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kandi Technologies and APPLIED 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 APPLIED MATLS INC are associated (or correlated) with Kandi Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kandi Technologies has no effect on the direction of APPLIED i.e., APPLIED and Kandi Technologies go up and down completely randomly.
Pair Corralation between APPLIED and Kandi Technologies
Assuming the 90 days trading horizon APPLIED MATLS INC is expected to generate 0.06 times more return on investment than Kandi Technologies. However, APPLIED MATLS INC is 15.8 times less risky than Kandi Technologies. It trades about 0.02 of its potential returns per unit of risk. Kandi Technologies Group is currently generating about -0.08 per unit of risk. If you would invest 9,789 in APPLIED MATLS INC on September 4, 2024 and sell it today you would earn a total of 96.00 from holding APPLIED MATLS INC or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
APPLIED MATLS INC vs. Kandi Technologies Group
Performance |
| Timeline |
| APPLIED MATLS INC |
| Kandi Technologies |
APPLIED and Kandi Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APPLIED and Kandi Technologies
The main advantage of trading using opposite APPLIED and Kandi Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APPLIED position performs unexpectedly, Kandi Technologies 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 Kandi Technologies will offset losses from the drop in Kandi Technologies' long position.| APPLIED vs. National Beverage Corp | APPLIED vs. Molson Coors Brewing | APPLIED vs. Diageo PLC ADR | APPLIED vs. Anheuser Busch Inbev |
| Kandi Technologies vs. Ford Motor | Kandi Technologies vs. General Motors | Kandi Technologies vs. Goodyear Tire Rubber | Kandi Technologies vs. Li Auto |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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