Correlation Between Mercedes Benz and Kandi Technologies
Can any of the company-specific risk be diversified away by investing in both Mercedes Benz 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 Mercedes Benz and Kandi Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mercedes Benz Group and Kandi Technologies Group, you can compare the effects of market volatilities on Mercedes Benz 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 Mercedes Benz with a short position of Kandi Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercedes Benz and Kandi Technologies.
Diversification Opportunities for Mercedes Benz and Kandi Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mercedes and Kandi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mercedes Benz Group and Kandi Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kandi Technologies and Mercedes Benz 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 Mercedes Benz Group 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 Mercedes Benz i.e., Mercedes Benz and Kandi Technologies go up and down completely randomly.
Pair Corralation between Mercedes Benz and Kandi Technologies
If you would invest 205.00 in Kandi Technologies Group on February 6, 2024 and sell it today you would earn a total of 41.00 from holding Kandi Technologies Group or generate 20.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Mercedes Benz Group vs. Kandi Technologies Group
Performance |
Timeline |
Mercedes Benz Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kandi Technologies |
Mercedes Benz and Kandi Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mercedes Benz and Kandi Technologies
The main advantage of trading using opposite Mercedes Benz and Kandi Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercedes Benz 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.Mercedes Benz vs. POSCO Holdings | Mercedes Benz vs. United Microelectronics | Mercedes Benz vs. Cirrus Logic | Mercedes Benz vs. ZK International Group |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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