Correlation Between KULR Technology and Vicor
Can any of the company-specific risk be diversified away by investing in both KULR Technology and Vicor 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 Vicor 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 Vicor, you can compare the effects of market volatilities on KULR Technology and Vicor 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 Vicor. Check out your portfolio center. Please also check ongoing floating volatility patterns of KULR Technology and Vicor.
Diversification Opportunities for KULR Technology and Vicor
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KULR and Vicor is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding KULR Technology Group and Vicor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vicor 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 Vicor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vicor has no effect on the direction of KULR Technology i.e., KULR Technology and Vicor go up and down completely randomly.
Pair Corralation between KULR Technology and Vicor
Given the investment horizon of 90 days KULR Technology Group is expected to under-perform the Vicor. In addition to that, KULR Technology is 1.36 times more volatile than Vicor. It trades about -0.01 of its total potential returns per unit of risk. Vicor is currently generating about 0.01 per unit of volatility. If you would invest 5,154 in Vicor on November 18, 2024 and sell it today you would lose (142.00) from holding Vicor or give up 2.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KULR Technology Group vs. Vicor
Performance |
| Timeline |
| KULR Technology Group |
| Vicor |
KULR Technology and Vicor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KULR Technology and Vicor
The main advantage of trading using opposite KULR Technology and Vicor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KULR Technology position performs unexpectedly, Vicor 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 Vicor will offset losses from the drop in Vicor's long position.| KULR Technology vs. Richardson Electronics | KULR Technology vs. Interlink Electronics | KULR Technology vs. SigmaTron International | KULR Technology vs. Maris Tech |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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