Correlation Between KULR Technology and AbraSilver Resource
Can any of the company-specific risk be diversified away by investing in both KULR Technology and AbraSilver Resource 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 KULR Technology and AbraSilver Resource into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KULR Technology Group and AbraSilver Resource Corp, you can compare the effects of market volatilities on KULR Technology and AbraSilver Resource 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 KULR Technology with a short position of AbraSilver Resource. Check out your portfolio center. Please also check ongoing floating volatility patterns of KULR Technology and AbraSilver Resource.
Diversification Opportunities for KULR Technology and AbraSilver Resource
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KULR and AbraSilver is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding KULR Technology Group and AbraSilver Resource Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AbraSilver Resource Corp and KULR Technology 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 KULR Technology Group are associated (or correlated) with AbraSilver Resource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AbraSilver Resource Corp has no effect on the direction of KULR Technology i.e., KULR Technology and AbraSilver Resource go up and down completely randomly.
Pair Corralation between KULR Technology and AbraSilver Resource
Given the investment horizon of 90 days KULR Technology Group is expected to generate 2.48 times more return on investment than AbraSilver Resource. However, KULR Technology is 2.48 times more volatile than AbraSilver Resource Corp. It trades about 0.06 of its potential returns per unit of risk. AbraSilver Resource Corp is currently generating about 0.04 per unit of risk. If you would invest 126.00 in KULR Technology Group on October 21, 2024 and sell it today you would earn a total of 102.00 from holding KULR Technology Group or generate 80.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KULR Technology Group vs. AbraSilver Resource Corp
Performance |
| Timeline |
| KULR Technology Group |
| AbraSilver Resource Corp |
KULR Technology and AbraSilver Resource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KULR Technology and AbraSilver Resource
The main advantage of trading using opposite KULR Technology and AbraSilver Resource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KULR Technology position performs unexpectedly, AbraSilver Resource 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 AbraSilver Resource will offset losses from the drop in AbraSilver Resource's long position.| KULR Technology vs. Richardson Electronics | KULR Technology vs. Interlink Electronics | KULR Technology vs. SigmaTron International | KULR Technology vs. Maris Tech |
| AbraSilver Resource vs. Defiance Silver Corp | AbraSilver Resource vs. Metallic Minerals Corp | AbraSilver Resource vs. Summa Silver Corp | AbraSilver Resource vs. Honey Badger Silver |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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