Correlation Between 695156AT6 and Kandi Technologies
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By analyzing existing cross correlation between PACKAGING P AMER and Kandi Technologies Group, you can compare the effects of market volatilities on 695156AT6 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 695156AT6 with a short position of Kandi Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of 695156AT6 and Kandi Technologies.
Diversification Opportunities for 695156AT6 and Kandi Technologies
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 695156AT6 and Kandi is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding PACKAGING P AMER and Kandi Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kandi Technologies and 695156AT6 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 PACKAGING P AMER 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 695156AT6 i.e., 695156AT6 and Kandi Technologies go up and down completely randomly.
Pair Corralation between 695156AT6 and Kandi Technologies
Assuming the 90 days trading horizon PACKAGING P AMER is expected to generate 0.16 times more return on investment than Kandi Technologies. However, PACKAGING P AMER is 6.36 times less risky than Kandi Technologies. It trades about 0.01 of its potential returns per unit of risk. Kandi Technologies Group is currently generating about -0.09 per unit of risk. If you would invest 9,423 in PACKAGING P AMER on August 31, 2024 and sell it today you would earn a total of 67.00 from holding PACKAGING P AMER or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 81.28% |
| Values | Daily Returns |
PACKAGING P AMER vs. Kandi Technologies Group
Performance |
| Timeline |
| PACKAGING P AMER |
| Kandi Technologies |
695156AT6 and Kandi Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 695156AT6 and Kandi Technologies
The main advantage of trading using opposite 695156AT6 and Kandi Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 695156AT6 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.| 695156AT6 vs. Kandi Technologies Group | 695156AT6 vs. Anterix | 695156AT6 vs. Digi International | 695156AT6 vs. Flex |
| Kandi Technologies vs. Hyliion Holdings Corp | Kandi Technologies vs. Foresight Autonomous Holdings | Kandi Technologies vs. Aeva Technologies | Kandi Technologies vs. Aeye Inc |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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