Correlation Between Kandi Technologies and Boston Properties

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

Diversification Opportunities for Kandi Technologies and Boston Properties

0.11

Correlation Coefficient

Kandi Technologies  Boston Properties

Average diversification

The 3 months correlation between Kandi and Boston is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and Boston Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Properties 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 Boston Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Properties has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and Boston Properties go up and down completely randomly.

Pair Corralation between Kandi Technologies and Boston Properties

Given the investment horizon of 90 days Kandi Technologies Group is expected to under-perform the Boston Properties. In addition to that, Kandi Technologies is 3.31 times more volatile than Boston Properties. It trades about -0.15 of its total potential returns per unit of risk. Boston Properties is currently generating about 0.0 per unit of volatility. If you would invest  8,051  in Boston Properties on September 15, 2024 and sell it today you would lose (58.00) from holding Boston Properties or give up 0.72% of portfolio value over 90 days.

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

Kandi Technologies Group  vs.  Boston Properties

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 fragile performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Boston Properties

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Boston Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Boston Properties is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Kandi Technologies and Boston Properties

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

The idea behind Kandi Technologies Group and Boston Properties 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..