Correlation Between KULR Technology and Celestica
Can any of the company-specific risk be diversified away by investing in both KULR Technology and Celestica 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 Celestica 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 Celestica, you can compare the effects of market volatilities on KULR Technology and Celestica 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 Celestica. Check out your portfolio center. Please also check ongoing floating volatility patterns of KULR Technology and Celestica.
Diversification Opportunities for KULR Technology and Celestica
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KULR and Celestica is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding KULR Technology Group and Celestica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celestica 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 Celestica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celestica has no effect on the direction of KULR Technology i.e., KULR Technology and Celestica go up and down completely randomly.
Pair Corralation between KULR Technology and Celestica
Given the investment horizon of 90 days KULR Technology Group is expected to generate 2.88 times more return on investment than Celestica. However, KULR Technology is 2.88 times more volatile than Celestica. It trades about 0.1 of its potential returns per unit of risk. Celestica is currently generating about 0.13 per unit of risk. If you would invest 15.00 in KULR Technology Group on August 27, 2024 and sell it today you would earn a total of 30.00 from holding KULR Technology Group or generate 200.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KULR Technology Group vs. Celestica
Performance |
| Timeline |
| KULR Technology Group |
| Celestica |
KULR Technology and Celestica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KULR Technology and Celestica
The main advantage of trading using opposite KULR Technology and Celestica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KULR Technology position performs unexpectedly, Celestica 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 Celestica will offset losses from the drop in Celestica's long position.| KULR Technology vs. Plexus Corp | KULR Technology vs. Benchmark Electronics | KULR Technology vs. Jabil Circuit | KULR Technology vs. Sanmina |
| Celestica vs. Plexus Corp | Celestica vs. Benchmark Electronics | Celestica vs. Jabil Circuit | Celestica vs. Sanmina |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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