Correlation Between 75513ECP4 and Kandi Technologies

Can any of the company-specific risk be diversified away by investing in both 75513ECP4 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 75513ECP4 and Kandi Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between RTX 303 15 MAR 52 and Kandi Technologies Group, you can compare the effects of market volatilities on 75513ECP4 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 75513ECP4 with a short position of Kandi Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of 75513ECP4 and Kandi Technologies.

Diversification Opportunities for 75513ECP4 and Kandi Technologies

0.58

Correlation Coefficient

75513ECP4  Kandi Technologies

Very weak diversification

The 3 months correlation between 75513ECP4 and Kandi is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding RTX 303 15 MAR 52 and Kandi Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kandi Technologies and 75513ECP4 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 RTX 303 15 MAR 52 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 75513ECP4 i.e., 75513ECP4 and Kandi Technologies go up and down completely randomly.

Pair Corralation between 75513ECP4 and Kandi Technologies

Assuming the 90 days trading horizon RTX 303 15 MAR 52 is expected to under-perform the Kandi Technologies. But the bond apears to be less risky and, when comparing its historical volatility, RTX 303 15 MAR 52 is 2.15 times less risky than Kandi Technologies. The bond trades about -0.03 of its potential returns per unit of risk. The Kandi Technologies Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  101.00  in Kandi Technologies Group on October 13, 2024 and sell it today you would earn a total of  1.00  from holding Kandi Technologies Group or generate 0.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.0%
Values	Daily Returns

RTX 303 15 MAR 52  vs.  Kandi Technologies Group

RTX 303 15

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days RTX 303 15 MAR 52 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 75513ECP4 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

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 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.

Pair Trading with 75513ECP4 and Kandi Technologies

The main advantage of trading using opposite 75513ECP4 and Kandi Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 75513ECP4 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 RTX 303 15 MAR 52 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.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.