Correlation Between KULR Technology and Central Japan
Can any of the company-specific risk be diversified away by investing in both KULR Technology and Central Japan 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 Central Japan 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 Central Japan Railway, you can compare the effects of market volatilities on KULR Technology and Central Japan 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 Central Japan. Check out your portfolio center. Please also check ongoing floating volatility patterns of KULR Technology and Central Japan.
Diversification Opportunities for KULR Technology and Central Japan
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KULR and Central is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding KULR Technology Group and Central Japan Railway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Japan Railway 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 Central Japan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Japan Railway has no effect on the direction of KULR Technology i.e., KULR Technology and Central Japan go up and down completely randomly.
Pair Corralation between KULR Technology and Central Japan
If you would invest 25.00 in KULR Technology Group on October 24, 2024 and sell it today you would earn a total of 203.00 from holding KULR Technology Group or generate 812.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.23% |
| Values | Daily Returns |
KULR Technology Group vs. Central Japan Railway
Performance |
| Timeline |
| KULR Technology Group |
| Central Japan Railway |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KULR Technology and Central Japan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KULR Technology and Central Japan
The main advantage of trading using opposite KULR Technology and Central Japan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KULR Technology position performs unexpectedly, Central Japan 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 Central Japan will offset losses from the drop in Central Japan's long position.| KULR Technology vs. Richardson Electronics | KULR Technology vs. Interlink Electronics | KULR Technology vs. SigmaTron International | KULR Technology vs. Maris Tech |
| Central Japan vs. West Japan Railway | Central Japan vs. Central Japan Railway | Central Japan vs. LB Foster |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |