Correlation Between SORL Auto and Kandi Technologies
Can any of the company-specific risk be diversified away by investing in both SORL Auto 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 SORL Auto and Kandi Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SORL Auto Parts and Kandi Technologies Group, you can compare the effects of market volatilities on SORL Auto 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 SORL Auto with a short position of Kandi Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of SORL Auto and Kandi Technologies.
Diversification Opportunities for SORL Auto and Kandi Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SORL and Kandi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SORL Auto Parts and Kandi Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kandi Technologies and SORL Auto 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 SORL Auto Parts 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 SORL Auto i.e., SORL Auto and Kandi Technologies go up and down completely randomly.
Pair Corralation between SORL Auto and Kandi Technologies
If you would invest (100.00) in SORL Auto Parts on January 26, 2024 and sell it today you would earn a total of 100.00 from holding SORL Auto Parts or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SORL Auto Parts vs. Kandi Technologies Group
Performance |
| Timeline |
| SORL Auto Parts |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kandi Technologies |
SORL Auto and Kandi Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SORL Auto and Kandi Technologies
The main advantage of trading using opposite SORL Auto and Kandi Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SORL Auto 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.| SORL Auto vs. Corning Incorporated | SORL Auto vs. Scholastic | SORL Auto vs. Alderon Iron Ore | SORL Auto vs. Visionary Education Technology |
| Kandi Technologies vs. Fox Factory Holding | Kandi Technologies vs. Douglas Dynamics | Kandi Technologies vs. Monro Muffler Brake |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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