Correlation Between Kandi Technologies and Niu Technologies
Can any of the company-specific risk be diversified away by investing in both Kandi Technologies and Niu 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 Kandi Technologies and Niu Technologies 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 Niu Technologies, you can compare the effects of market volatilities on Kandi Technologies and Niu 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 Kandi Technologies with a short position of Niu Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and Niu Technologies.
Diversification Opportunities for Kandi Technologies and Niu Technologies
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kandi and Niu is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and Niu Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niu Technologies 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 Niu Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niu Technologies has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and Niu Technologies go up and down completely randomly.
Pair Corralation between Kandi Technologies and Niu Technologies
Given the investment horizon of 90 days Kandi Technologies Group is expected to generate 0.58 times more return on investment than Niu Technologies. However, Kandi Technologies Group is 1.74 times less risky than Niu Technologies. It trades about 0.01 of its potential returns per unit of risk. Niu Technologies is currently generating about -0.04 per unit of risk. If you would invest 263.00 in Kandi Technologies Group on January 20, 2024 and sell it today you would lose (8.00) from holding Kandi Technologies Group or give up 3.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kandi Technologies Group vs. Niu Technologies
Performance |
| Timeline |
| Kandi Technologies |
| Niu Technologies |
Kandi Technologies and Niu Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandi Technologies and Niu Technologies
The main advantage of trading using opposite Kandi Technologies and Niu Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, Niu 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 Niu Technologies will offset losses from the drop in Niu Technologies' long position.| Kandi Technologies vs. Microvast Holdings | Kandi Technologies vs. EVgo Equity Warrants | Kandi Technologies vs. Xos Inc | Kandi Technologies vs. AEye Inc |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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