Correlation Between Fuling Global and Kandi Technologies

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Can any of the company-specific risk be diversified away by investing in both Fuling Global 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 Fuling Global and Kandi Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fuling Global and Kandi Technologies Group, you can compare the effects of market volatilities on Fuling Global 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 Fuling Global with a short position of Kandi Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuling Global and Kandi Technologies.

Diversification Opportunities for Fuling Global and Kandi Technologies

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Fuling and Kandi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fuling Global and Kandi Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kandi Technologies and Fuling Global 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 Fuling Global 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 Fuling Global i.e., Fuling Global and Kandi Technologies go up and down completely randomly.

Pair Corralation between Fuling Global and Kandi Technologies

If you would invest (100.00) in Fuling Global on December 29, 2023 and sell it today you would earn a total of  100.00  from holding Fuling Global or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Fuling Global  vs.  Kandi Technologies Group

 Performance 
       Timeline  
Fuling Global 

Risk-Adjusted Performance

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Over the last 90 days Fuling Global has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Fuling Global is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.
Kandi Technologies 

Risk-Adjusted Performance

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Over the last 90 days Kandi Technologies Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in April 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Fuling Global and Kandi Technologies Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fuling Global and Kandi Technologies

The main advantage of trading using opposite Fuling Global and Kandi Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuling Global 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 Fuling Global 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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