Correlation Between Kandi Technologies and IShares MSCI

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

Diversification Opportunities for Kandi Technologies and IShares MSCI

-0.8
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Kandi and IShares is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and iShares MSCI USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI USA 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 IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI USA has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and IShares MSCI go up and down completely randomly.

Pair Corralation between Kandi Technologies and IShares MSCI

Given the investment horizon of 90 days Kandi Technologies Group is expected to generate 3.27 times more return on investment than IShares MSCI. However, Kandi Technologies is 3.27 times more volatile than iShares MSCI USA. It trades about 0.33 of its potential returns per unit of risk. iShares MSCI USA is currently generating about -0.13 per unit of risk. If you would invest  208.00  in Kandi Technologies Group on January 26, 2024 and sell it today you would earn a total of  53.00  from holding Kandi Technologies Group or generate 25.48% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Kandi Technologies Group  vs.  iShares MSCI USA

 Performance 
       Timeline  
Kandi Technologies 

Risk-Adjusted Performance

0 of 100

 
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 fairly strong fundamental indicators, Kandi Technologies is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.
iShares MSCI USA 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in iShares MSCI USA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable essential indicators, IShares MSCI is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Kandi Technologies and IShares MSCI Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kandi Technologies and IShares MSCI

The main advantage of trading using opposite Kandi Technologies and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, IShares MSCI 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 IShares MSCI will offset losses from the drop in IShares MSCI's long position.
The idea behind Kandi Technologies Group and iShares MSCI USA 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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