Correlation Between Kandi Technologies and LOWES

Can any of the company-specific risk be diversified away by investing in both Kandi Technologies and LOWES 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 LOWES 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 LOWES PANIES INC, you can compare the effects of market volatilities on Kandi Technologies and LOWES 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 LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and LOWES.

Diversification Opportunities for Kandi Technologies and LOWES

0.62

Correlation Coefficient

Kandi Technologies  LOWES

Poor diversification

The 3 months correlation between Kandi and LOWES is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and LOWES PANIES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOWES PANIES INC 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 LOWES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOWES PANIES INC has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and LOWES go up and down completely randomly.

Pair Corralation between Kandi Technologies and LOWES

Given the investment horizon of 90 days Kandi Technologies Group is expected to under-perform the LOWES. In addition to that, Kandi Technologies is 3.43 times more volatile than LOWES PANIES INC. It trades about -0.15 of its total potential returns per unit of risk. LOWES PANIES INC is currently generating about -0.15 per unit of volatility. If you would invest  8,619  in LOWES PANIES INC on September 12, 2024 and sell it today you would lose (1,115) from holding LOWES PANIES INC or give up 12.94% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	96.88%
Values	Daily Returns

Kandi Technologies Group  vs.  LOWES PANIES INC

Kandi Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kandi Technologies Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

LOWES PANIES INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days LOWES PANIES INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for LOWES PANIES INC investors.

Pair Trading with Kandi Technologies and LOWES

The main advantage of trading using opposite Kandi Technologies and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, LOWES 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 LOWES will offset losses from the drop in LOWES's long position.

The idea behind Kandi Technologies Group and LOWES PANIES INC 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.