Correlation Between Kandi Technologies and Polar Power

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

Diversification Opportunities for Kandi Technologies and Polar Power

0.58

Correlation Coefficient

Kandi Technologies  Polar Power

Very weak diversification

The 3 months correlation between Kandi and Polar is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and Polar Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polar Power 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 Polar Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polar Power has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and Polar Power go up and down completely randomly.

Pair Corralation between Kandi Technologies and Polar Power

Given the investment horizon of 90 days Kandi Technologies Group is expected to generate 1.21 times more return on investment than Polar Power. However, Kandi Technologies is 1.21 times more volatile than Polar Power. It trades about 0.03 of its potential returns per unit of risk. Polar Power is currently generating about -0.02 per unit of risk. If you would invest  109.00  in Kandi Technologies Group on May 6, 2025 and sell it today you would earn a total of  4.00  from holding Kandi Technologies Group or generate 3.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Kandi Technologies Group  vs.  Polar Power

Kandi Technologies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kandi Technologies Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating fundamental indicators, Kandi Technologies may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Polar Power

Risk-Adjusted Performance

Very Weak

Over the last 90 days Polar Power has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong essential indicators, Polar Power is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Kandi Technologies and Polar Power

The main advantage of trading using opposite Kandi Technologies and Polar Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, Polar Power 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 Polar Power will offset losses from the drop in Polar Power's long position.

The idea behind Kandi Technologies Group and Polar Power 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.

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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.