Correlation Between Kandi Technologies and NESNVX

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Can any of the company-specific risk be diversified away by investing in both Kandi Technologies and NESNVX 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 NESNVX 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 NESNVX 625 15 JAN 26, you can compare the effects of market volatilities on Kandi Technologies and NESNVX 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 NESNVX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and NESNVX.

Diversification Opportunities for Kandi Technologies and NESNVX

-0.74
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Kandi and NESNVX is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and NESNVX 625 15 JAN 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NESNVX 625 15 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 NESNVX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NESNVX 625 15 has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and NESNVX go up and down completely randomly.

Pair Corralation between Kandi Technologies and NESNVX

Given the investment horizon of 90 days Kandi Technologies Group is expected to generate 2.15 times more return on investment than NESNVX. However, Kandi Technologies is 2.15 times more volatile than NESNVX 625 15 JAN 26. It trades about 0.06 of its potential returns per unit of risk. NESNVX 625 15 JAN 26 is currently generating about -0.08 per unit of risk. If you would invest  115.00  in Kandi Technologies Group on October 3, 2024 and sell it today you would earn a total of  5.00  from holding Kandi Technologies Group or generate 4.35% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy33.33%
ValuesDaily Returns

Kandi Technologies Group  vs.  NESNVX 625 15 JAN 26

 Performance 
       Timeline  
Kandi Technologies 

Risk-Adjusted Performance

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Weak
 
Strong
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 unfluctuating performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.
NESNVX 625 15 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days NESNVX 625 15 JAN 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, NESNVX is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Kandi Technologies and NESNVX Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kandi Technologies and NESNVX

The main advantage of trading using opposite Kandi Technologies and NESNVX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, NESNVX 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 NESNVX will offset losses from the drop in NESNVX's long position.
The idea behind Kandi Technologies Group and NESNVX 625 15 JAN 26 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.

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