Correlation Between KULR Technology and Research Frontiers
Can any of the company-specific risk be diversified away by investing in both KULR Technology and Research Frontiers 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 Research Frontiers 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 Research Frontiers Incorporated, you can compare the effects of market volatilities on KULR Technology and Research Frontiers 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 Research Frontiers. Check out your portfolio center. Please also check ongoing floating volatility patterns of KULR Technology and Research Frontiers.
Diversification Opportunities for KULR Technology and Research Frontiers
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KULR and Research is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding KULR Technology Group and Research Frontiers Incorporate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Research Frontiers 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 Research Frontiers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Research Frontiers has no effect on the direction of KULR Technology i.e., KULR Technology and Research Frontiers go up and down completely randomly.
Pair Corralation between KULR Technology and Research Frontiers
Given the investment horizon of 90 days KULR Technology Group is expected to generate 2.46 times more return on investment than Research Frontiers. However, KULR Technology is 2.46 times more volatile than Research Frontiers Incorporated. It trades about 0.04 of its potential returns per unit of risk. Research Frontiers Incorporated is currently generating about 0.01 per unit of risk. If you would invest 135.00 in KULR Technology Group on September 2, 2024 and sell it today you would lose (19.00) from holding KULR Technology Group or give up 14.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KULR Technology Group vs. Research Frontiers Incorporate
Performance |
| Timeline |
| KULR Technology Group |
| Research Frontiers |
KULR Technology and Research Frontiers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KULR Technology and Research Frontiers
The main advantage of trading using opposite KULR Technology and Research Frontiers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KULR Technology position performs unexpectedly, Research Frontiers 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 Research Frontiers will offset losses from the drop in Research Frontiers' 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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