Correlation Between KULR Technology and Allied Motion
Can any of the company-specific risk be diversified away by investing in both KULR Technology and Allied Motion 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 Allied Motion 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 Allied Motion Technologies, you can compare the effects of market volatilities on KULR Technology and Allied Motion 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 Allied Motion. Check out your portfolio center. Please also check ongoing floating volatility patterns of KULR Technology and Allied Motion.
Diversification Opportunities for KULR Technology and Allied Motion
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KULR and Allied is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding KULR Technology Group and Allied Motion Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allied Motion Techno 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 Allied Motion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allied Motion Techno has no effect on the direction of KULR Technology i.e., KULR Technology and Allied Motion go up and down completely randomly.
Pair Corralation between KULR Technology and Allied Motion
Given the investment horizon of 90 days KULR Technology is expected to generate 1.42 times less return on investment than Allied Motion. In addition to that, KULR Technology is 3.35 times more volatile than Allied Motion Technologies. It trades about 0.01 of its total potential returns per unit of risk. Allied Motion Technologies is currently generating about 0.03 per unit of volatility. If you would invest 3,624 in Allied Motion Technologies on August 24, 2024 and sell it today you would earn a total of 293.00 from holding Allied Motion Technologies or generate 8.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 32.06% |
| Values | Daily Returns |
KULR Technology Group vs. Allied Motion Technologies
Performance |
| Timeline |
| KULR Technology Group |
| Allied Motion Techno |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KULR Technology and Allied Motion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KULR Technology and Allied Motion
The main advantage of trading using opposite KULR Technology and Allied Motion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KULR Technology position performs unexpectedly, Allied Motion 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 Allied Motion will offset losses from the drop in Allied Motion's long position.| KULR Technology vs. Richardson Electronics | KULR Technology vs. Interlink Electronics | KULR Technology vs. SigmaTron International | KULR Technology vs. Maris Tech |
| Allied Motion vs. Plexus Corp | Allied Motion vs. Sanmina | Allied Motion vs. Bel Fuse A | Allied Motion vs. Methode Electronics |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |