Correlation Between Weibo Corp and Kandi Technologies
Can any of the company-specific risk be diversified away by investing in both Weibo Corp and Kandi Technologies 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 Weibo Corp and Kandi Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weibo Corp and Kandi Technologies Group, you can compare the effects of market volatilities on Weibo Corp 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 Weibo Corp with a short position of Kandi Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weibo Corp and Kandi Technologies.
Diversification Opportunities for Weibo Corp and Kandi Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Weibo and Kandi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Weibo Corp and Kandi Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kandi Technologies and Weibo Corp 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 Weibo Corp 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 Weibo Corp i.e., Weibo Corp and Kandi Technologies go up and down completely randomly.
Pair Corralation between Weibo Corp and Kandi Technologies
Allowing for the 90-day total investment horizon Weibo Corp is expected to generate 0.82 times more return on investment than Kandi Technologies. However, Weibo Corp is 1.22 times less risky than Kandi Technologies. It trades about 0.11 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 734.00 in Weibo Corp on August 28, 2024 and sell it today you would earn a total of 187.00 from holding Weibo Corp or generate 25.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weibo Corp vs. Kandi Technologies Group
Performance |
| Timeline |
| Weibo Corp |
| Kandi Technologies |
Weibo Corp and Kandi Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weibo Corp and Kandi Technologies
The main advantage of trading using opposite Weibo Corp and Kandi Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weibo Corp 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.| Weibo Corp vs. YY Inc Class | Weibo Corp vs. DouYu International Holdings | Weibo Corp vs. Tencent Music Entertainment | Weibo Corp vs. Autohome |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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