Correlation Between AYRO and Kandi Technologies

Can any of the company-specific risk be diversified away by investing in both AYRO 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 AYRO and Kandi Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AYRO Inc and Kandi Technologies Group, you can compare the effects of market volatilities on AYRO 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 AYRO with a short position of Kandi Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of AYRO and Kandi Technologies.

Diversification Opportunities for AYRO and Kandi Technologies

-0.56

Correlation Coefficient

AYRO  Kandi Technologies

Excellent diversification

The 3 months correlation between AYRO and Kandi is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding AYRO 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 AYRO 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 AYRO 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 AYRO i.e., AYRO and Kandi Technologies go up and down completely randomly.

Pair Corralation between AYRO and Kandi Technologies

Given the investment horizon of 90 days AYRO Inc is expected to under-perform the Kandi Technologies. In addition to that, AYRO is 1.31 times more volatile than Kandi Technologies Group. It trades about -0.07 of its total potential returns per unit of risk. Kandi Technologies Group is currently generating about -0.02 per unit of volatility. If you would invest  232.00  in Kandi Technologies Group on December 4, 2024 and sell it today you would lose (101.00) from holding Kandi Technologies Group or give up 43.53% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

AYRO Inc  vs.  Kandi Technologies Group

AYRO Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days AYRO Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Kandi Technologies

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kandi Technologies Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating fundamental indicators, Kandi Technologies demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AYRO and Kandi Technologies

The main advantage of trading using opposite AYRO and Kandi Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AYRO 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.

The idea behind AYRO Inc and Kandi Technologies Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.