Correlation Between SigmaTron International and KULR Technology
Can any of the company-specific risk be diversified away by investing in both SigmaTron International and KULR Technology 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 SigmaTron International and KULR Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SigmaTron International and KULR Technology Group, you can compare the effects of market volatilities on SigmaTron International and KULR Technology 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 SigmaTron International with a short position of KULR Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of SigmaTron International and KULR Technology.
Diversification Opportunities for SigmaTron International and KULR Technology
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SigmaTron and KULR is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding SigmaTron International and KULR Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KULR Technology Group and SigmaTron International 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 SigmaTron International are associated (or correlated) with KULR Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KULR Technology Group has no effect on the direction of SigmaTron International i.e., SigmaTron International and KULR Technology go up and down completely randomly.
Pair Corralation between SigmaTron International and KULR Technology
Given the investment horizon of 90 days SigmaTron International is expected to generate 0.53 times more return on investment than KULR Technology. However, SigmaTron International is 1.89 times less risky than KULR Technology. It trades about -0.08 of its potential returns per unit of risk. KULR Technology Group is currently generating about -0.19 per unit of risk. If you would invest 177.00 in SigmaTron International on November 2, 2024 and sell it today you would lose (13.00) from holding SigmaTron International or give up 7.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SigmaTron International vs. KULR Technology Group
Performance |
| Timeline |
| SigmaTron International |
| KULR Technology Group |
SigmaTron International and KULR Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SigmaTron International and KULR Technology
The main advantage of trading using opposite SigmaTron International and KULR Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SigmaTron International position performs unexpectedly, KULR Technology 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 KULR Technology will offset losses from the drop in KULR Technology's long position.| SigmaTron International vs. Integrated Media Technology | SigmaTron International vs. Data IO | SigmaTron International vs. Research Frontiers Incorporated | SigmaTron International vs. Maris Tech |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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