Correlation Between TTM Technologies and KULR Technology
Can any of the company-specific risk be diversified away by investing in both TTM Technologies 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 TTM Technologies and KULR Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TTM Technologies and KULR Technology Group, you can compare the effects of market volatilities on TTM Technologies 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 TTM Technologies with a short position of KULR Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of TTM Technologies and KULR Technology.
Diversification Opportunities for TTM Technologies and KULR Technology
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TTM and KULR is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding TTM Technologies 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 TTM Technologies 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 TTM Technologies 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 TTM Technologies i.e., TTM Technologies and KULR Technology go up and down completely randomly.
Pair Corralation between TTM Technologies and KULR Technology
Given the investment horizon of 90 days TTM Technologies is expected to generate 0.22 times more return on investment than KULR Technology. However, TTM Technologies is 4.62 times less risky than KULR Technology. It trades about 0.01 of its potential returns per unit of risk. KULR Technology Group is currently generating about -0.31 per unit of risk. If you would invest 2,470 in TTM Technologies on October 29, 2024 and sell it today you would lose (2.00) from holding TTM Technologies or give up 0.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
TTM Technologies vs. KULR Technology Group
Performance |
| Timeline |
| TTM Technologies |
| KULR Technology Group |
TTM Technologies and KULR Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TTM Technologies and KULR Technology
The main advantage of trading using opposite TTM Technologies and KULR Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TTM Technologies 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.| TTM Technologies vs. Sanmina | TTM Technologies vs. Benchmark Electronics | TTM Technologies vs. Methode Electronics | TTM Technologies vs. OSI Systems |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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