Correlation Between KULR Technology and China Power
Can any of the company-specific risk be diversified away by investing in both KULR Technology and China Power 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 China Power 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 China Power Equipment, you can compare the effects of market volatilities on KULR Technology and China Power 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 China Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of KULR Technology and China Power.
Diversification Opportunities for KULR Technology and China Power
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KULR and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KULR Technology Group and China Power Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Power Equipment 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 China Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Power Equipment has no effect on the direction of KULR Technology i.e., KULR Technology and China Power go up and down completely randomly.
Pair Corralation between KULR Technology and China Power
If you would invest 29.00 in KULR Technology Group on September 3, 2024 and sell it today you would earn a total of 87.00 from holding KULR Technology Group or generate 300.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KULR Technology Group vs. China Power Equipment
Performance |
| Timeline |
| KULR Technology Group |
| China Power Equipment |
KULR Technology and China Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KULR Technology and China Power
The main advantage of trading using opposite KULR Technology and China Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KULR Technology position performs unexpectedly, China Power 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 China Power will offset losses from the drop in China Power's long position.| KULR Technology vs. Richardson Electronics | KULR Technology vs. Interlink Electronics | KULR Technology vs. SigmaTron International | KULR Technology vs. Maris Tech |
| China Power vs. KULR Technology Group | China Power vs. Ouster Inc | China Power vs. MicroCloud Hologram | China Power vs. Kopin |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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