Correlation Between KULR Technology and KEYCORP

Can any of the company-specific risk be diversified away by investing in both KULR Technology and KEYCORP 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 KEYCORP 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 KEYCORP MEDIUM TERM, you can compare the effects of market volatilities on KULR Technology and KEYCORP 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 KEYCORP. Check out your portfolio center. Please also check ongoing floating volatility patterns of KULR Technology and KEYCORP.

Diversification Opportunities for KULR Technology and KEYCORP

-0.77

Correlation Coefficient

KULR Technology  KEYCORP

Pay attention - limited upside

The 3 months correlation between KULR and KEYCORP is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding KULR Technology Group and KEYCORP MEDIUM TERM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEYCORP MEDIUM TERM 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 KEYCORP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEYCORP MEDIUM TERM has no effect on the direction of KULR Technology i.e., KULR Technology and KEYCORP go up and down completely randomly.

Pair Corralation between KULR Technology and KEYCORP

Given the investment horizon of 90 days KULR Technology Group is expected to generate 20.77 times more return on investment than KEYCORP. However, KULR Technology is 20.77 times more volatile than KEYCORP MEDIUM TERM. It trades about 0.18 of its potential returns per unit of risk. KEYCORP MEDIUM TERM is currently generating about -0.06 per unit of risk. If you would invest  40.00  in KULR Technology Group on September 24, 2024 and sell it today you would earn a total of  255.00  from holding KULR Technology Group or generate 637.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	97.64%
Values	Daily Returns

KULR Technology Group  vs.  KEYCORP MEDIUM TERM

KULR Technology Group

Risk-Adjusted Performance

24 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in KULR Technology Group are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting essential indicators, KULR Technology reported solid returns over the last few months and may actually be approaching a breakup point.

KEYCORP MEDIUM TERM

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KEYCORP MEDIUM TERM has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, KEYCORP is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with KULR Technology and KEYCORP

The main advantage of trading using opposite KULR Technology and KEYCORP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KULR Technology position performs unexpectedly, KEYCORP 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 KEYCORP will offset losses from the drop in KEYCORP's long position.

The idea behind KULR Technology Group and KEYCORP MEDIUM TERM pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.