Correlation Between Biofil Chemicals and Kandi Technologies
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By analyzing existing cross correlation between Biofil Chemicals Pharmaceuticals and Kandi Technologies Group, you can compare the effects of market volatilities on Biofil Chemicals 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 Biofil Chemicals with a short position of Kandi Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biofil Chemicals and Kandi Technologies.
Diversification Opportunities for Biofil Chemicals and Kandi Technologies
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Biofil and Kandi is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Biofil Chemicals Pharmaceutica and Kandi Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kandi Technologies and Biofil Chemicals 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 Biofil Chemicals Pharmaceuticals 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 Biofil Chemicals i.e., Biofil Chemicals and Kandi Technologies go up and down completely randomly.
Pair Corralation between Biofil Chemicals and Kandi Technologies
Assuming the 90 days trading horizon Biofil Chemicals Pharmaceuticals is expected to generate 1.55 times more return on investment than Kandi Technologies. However, Biofil Chemicals is 1.55 times more volatile than Kandi Technologies Group. It trades about 0.06 of its potential returns per unit of risk. Kandi Technologies Group is currently generating about 0.05 per unit of risk. If you would invest 6,315 in Biofil Chemicals Pharmaceuticals on February 5, 2024 and sell it today you would earn a total of 440.00 from holding Biofil Chemicals Pharmaceuticals or generate 6.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 88.37% |
Values | Daily Returns |
Biofil Chemicals Pharmaceutica vs. Kandi Technologies Group
Performance |
Timeline |
Biofil Chemicals Pha |
Kandi Technologies |
Biofil Chemicals and Kandi Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Biofil Chemicals and Kandi Technologies
The main advantage of trading using opposite Biofil Chemicals and Kandi Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biofil Chemicals 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.Biofil Chemicals vs. NRB Industrial Bearings | Biofil Chemicals vs. Shyam Metalics and | Biofil Chemicals vs. Lakshmi Finance Industrial | Biofil Chemicals vs. Alkali Metals Limited |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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