Correlation Between Kandi Technologies and Monument Circle
Can any of the company-specific risk be diversified away by investing in both Kandi Technologies and Monument Circle 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 Monument Circle 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 Monument Circle Acquisition, you can compare the effects of market volatilities on Kandi Technologies and Monument Circle 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 Monument Circle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and Monument Circle.
Diversification Opportunities for Kandi Technologies and Monument Circle
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kandi and Monument is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and Monument Circle Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monument Circle Acqu 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 Monument Circle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monument Circle Acqu has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and Monument Circle go up and down completely randomly.
Pair Corralation between Kandi Technologies and Monument Circle
If you would invest (100.00) in Monument Circle Acquisition on September 25, 2024 and sell it today you would earn a total of 100.00 from holding Monument Circle Acquisition or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 0.0% |
Values | Daily Returns |
Kandi Technologies Group vs. Monument Circle Acquisition
Performance |
Timeline |
Kandi Technologies |
Monument Circle Acqu |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kandi Technologies and Monument Circle Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kandi Technologies and Monument Circle
The main advantage of trading using opposite Kandi Technologies and Monument Circle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, Monument Circle 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 Monument Circle will offset losses from the drop in Monument Circle's long position.Kandi Technologies vs. Ford Motor | Kandi Technologies vs. General Motors | Kandi Technologies vs. Goodyear Tire Rubber | Kandi Technologies vs. Li Auto |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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