Correlation Between KULR Technology and SigmaTron International
Can any of the company-specific risk be diversified away by investing in both KULR Technology and SigmaTron International 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 SigmaTron International 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 SigmaTron International, you can compare the effects of market volatilities on KULR Technology and SigmaTron International 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 SigmaTron International. Check out your portfolio center. Please also check ongoing floating volatility patterns of KULR Technology and SigmaTron International.
Diversification Opportunities for KULR Technology and SigmaTron International
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between KULR and SigmaTron is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding KULR Technology Group and SigmaTron International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SigmaTron International 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 SigmaTron International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SigmaTron International has no effect on the direction of KULR Technology i.e., KULR Technology and SigmaTron International go up and down completely randomly.
Pair Corralation between KULR Technology and SigmaTron International
Given the investment horizon of 90 days KULR Technology Group is expected to generate 7.07 times more return on investment than SigmaTron International. However, KULR Technology is 7.07 times more volatile than SigmaTron International. It trades about 0.4 of its potential returns per unit of risk. SigmaTron International is currently generating about 0.08 per unit of risk. If you would invest 28.00 in KULR Technology Group on September 1, 2024 and sell it today you would earn a total of 88.00 from holding KULR Technology Group or generate 314.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KULR Technology Group vs. SigmaTron International
Performance |
| Timeline |
| KULR Technology Group |
| SigmaTron International |
KULR Technology and SigmaTron International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KULR Technology and SigmaTron International
The main advantage of trading using opposite KULR Technology and SigmaTron International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KULR Technology position performs unexpectedly, SigmaTron International 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 SigmaTron International will offset losses from the drop in SigmaTron International's long position.| KULR Technology vs. Desktop Metal | KULR Technology vs. Fabrinet | KULR Technology vs. Knowles Cor | KULR Technology vs. Ubiquiti Networks |
| SigmaTron International vs. Desktop Metal | SigmaTron International vs. Fabrinet | SigmaTron International vs. Knowles Cor | SigmaTron International vs. Ubiquiti Networks |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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