Correlation Between KULR Technology and Corning Incorporated
Can any of the company-specific risk be diversified away by investing in both KULR Technology and Corning Incorporated 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 Corning Incorporated 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 Corning Incorporated, you can compare the effects of market volatilities on KULR Technology and Corning Incorporated 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 Corning Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of KULR Technology and Corning Incorporated.
Diversification Opportunities for KULR Technology and Corning Incorporated
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KULR and Corning is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding KULR Technology Group and Corning Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corning Incorporated 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 Corning Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corning Incorporated has no effect on the direction of KULR Technology i.e., KULR Technology and Corning Incorporated go up and down completely randomly.
Pair Corralation between KULR Technology and Corning Incorporated
Given the investment horizon of 90 days KULR Technology Group is expected to generate 11.25 times more return on investment than Corning Incorporated. However, KULR Technology is 11.25 times more volatile than Corning Incorporated. It trades about 0.32 of its potential returns per unit of risk. Corning Incorporated is currently generating about 0.11 per unit of risk. If you would invest 30.00 in KULR Technology Group on August 28, 2024 and sell it today you would earn a total of 49.00 from holding KULR Technology Group or generate 163.33% 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. Corning Incorporated
Performance |
| Timeline |
| KULR Technology Group |
| Corning Incorporated |
KULR Technology and Corning Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KULR Technology and Corning Incorporated
The main advantage of trading using opposite KULR Technology and Corning Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KULR Technology position performs unexpectedly, Corning Incorporated 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 Corning Incorporated will offset losses from the drop in Corning Incorporated's long position.| KULR Technology vs. Richardson Electronics | KULR Technology vs. Interlink Electronics | KULR Technology vs. SigmaTron International | KULR Technology vs. Maris Tech |
| Corning Incorporated vs. OSI Systems | Corning Incorporated vs. Fabrinet | Corning Incorporated vs. Jabil Circuit | Corning Incorporated vs. Vicor |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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