Correlation Between KULR Technology and MicroCloud Hologram
Can any of the company-specific risk be diversified away by investing in both KULR Technology and MicroCloud Hologram 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 MicroCloud Hologram 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 MicroCloud Hologram, you can compare the effects of market volatilities on KULR Technology and MicroCloud Hologram 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 MicroCloud Hologram. Check out your portfolio center. Please also check ongoing floating volatility patterns of KULR Technology and MicroCloud Hologram.
Diversification Opportunities for KULR Technology and MicroCloud Hologram
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KULR and MicroCloud is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding KULR Technology Group and MicroCloud Hologram in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MicroCloud Hologram 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 MicroCloud Hologram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MicroCloud Hologram has no effect on the direction of KULR Technology i.e., KULR Technology and MicroCloud Hologram go up and down completely randomly.
Pair Corralation between KULR Technology and MicroCloud Hologram
Given the investment horizon of 90 days KULR Technology Group is expected to generate 1.84 times more return on investment than MicroCloud Hologram. However, KULR Technology is 1.84 times more volatile than MicroCloud Hologram. It trades about 0.32 of its potential returns per unit of risk. MicroCloud Hologram is currently generating about -0.18 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KULR Technology Group vs. MicroCloud Hologram
Performance |
| Timeline |
| KULR Technology Group |
| MicroCloud Hologram |
KULR Technology and MicroCloud Hologram Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KULR Technology and MicroCloud Hologram
The main advantage of trading using opposite KULR Technology and MicroCloud Hologram positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KULR Technology position performs unexpectedly, MicroCloud Hologram 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 MicroCloud Hologram will offset losses from the drop in MicroCloud Hologram's long position.| KULR Technology vs. Richardson Electronics | KULR Technology vs. Interlink Electronics | KULR Technology vs. SigmaTron International | KULR Technology vs. Maris Tech |
| MicroCloud Hologram vs. Plexus Corp | MicroCloud Hologram vs. Jabil Circuit | MicroCloud Hologram vs. Sanmina | MicroCloud Hologram vs. Methode Electronics |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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