Correlation Between KULR Technology and Heineken Holding
Can any of the company-specific risk be diversified away by investing in both KULR Technology and Heineken Holding 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 Heineken Holding 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 Heineken Holding NV, you can compare the effects of market volatilities on KULR Technology and Heineken Holding 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 Heineken Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of KULR Technology and Heineken Holding.
Diversification Opportunities for KULR Technology and Heineken Holding
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KULR and Heineken is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding KULR Technology Group and Heineken Holding NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heineken Holding 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 Heineken Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heineken Holding has no effect on the direction of KULR Technology i.e., KULR Technology and Heineken Holding go up and down completely randomly.
Pair Corralation between KULR Technology and Heineken Holding
Given the investment horizon of 90 days KULR Technology Group is expected to generate 9.45 times more return on investment than Heineken Holding. However, KULR Technology is 9.45 times more volatile than Heineken Holding NV. It trades about 0.36 of its potential returns per unit of risk. Heineken Holding NV is currently generating about -0.14 per unit of risk. If you would invest 128.00 in KULR Technology Group on October 7, 2024 and sell it today you would earn a total of 204.00 from holding KULR Technology Group or generate 159.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KULR Technology Group vs. Heineken Holding NV
Performance |
| Timeline |
| KULR Technology Group |
| Heineken Holding |
KULR Technology and Heineken Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KULR Technology and Heineken Holding
The main advantage of trading using opposite KULR Technology and Heineken Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KULR Technology position performs unexpectedly, Heineken Holding 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 Heineken Holding will offset losses from the drop in Heineken Holding's long position.| KULR Technology vs. Richardson Electronics | KULR Technology vs. Interlink Electronics | KULR Technology vs. SigmaTron International | KULR Technology vs. Maris Tech |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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