Correlation Between Kandi Technologies and Amrica Mvil

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

Diversification Opportunities for Kandi Technologies and Amrica Mvil

-0.37

Correlation Coefficient

Kandi Technologies  Amrica Mvil

Very good diversification

The 3 months correlation between Kandi and Amrica is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and Amrica Mvil SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amrica Mvil SAB 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 Amrica Mvil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amrica Mvil SAB has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and Amrica Mvil go up and down completely randomly.

Pair Corralation between Kandi Technologies and Amrica Mvil

If you would invest  108.00  in Amrica Mvil SAB on March 4, 2024 and sell it today you would earn a total of  0.00  from holding Amrica Mvil SAB or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Kandi Technologies Group  vs.  Amrica Mvil SAB

Kandi Technologies

Risk-Adjusted Performance

0 of 100

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 latest weak performance, the Stock's fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Amrica Mvil SAB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amrica Mvil SAB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Amrica Mvil is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Kandi Technologies and Amrica Mvil

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

The idea behind Kandi Technologies Group and Amrica Mvil SAB 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..