Correlation Between KULR Technology and Atlantic Sapphire

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

Diversification Opportunities for KULR Technology and Atlantic Sapphire

-0.33

Correlation Coefficient

KULR Technology  Atlantic Sapphire

Very good diversification

The 3 months correlation between KULR and Atlantic is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding KULR Technology Group and Atlantic Sapphire ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Sapphire ASA 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 Atlantic Sapphire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Sapphire ASA has no effect on the direction of KULR Technology i.e., KULR Technology and Atlantic Sapphire go up and down completely randomly.

Pair Corralation between KULR Technology and Atlantic Sapphire

Given the investment horizon of 90 days KULR Technology Group is expected to generate 0.7 times more return on investment than Atlantic Sapphire. However, KULR Technology Group is 1.43 times less risky than Atlantic Sapphire. It trades about 0.09 of its potential returns per unit of risk. Atlantic Sapphire ASA is currently generating about -0.03 per unit of risk. If you would invest  32.00  in KULR Technology Group on September 14, 2024 and sell it today you would earn a total of  89.00  from holding KULR Technology Group or generate 278.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.63%
Values	Daily Returns

KULR Technology Group  vs.  Atlantic Sapphire ASA

KULR Technology Group

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in KULR Technology Group are ranked lower than 16 (%) 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.

Atlantic Sapphire ASA

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Atlantic Sapphire ASA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly weak basic indicators, Atlantic Sapphire may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with KULR Technology and Atlantic Sapphire

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

The idea behind KULR Technology Group and Atlantic Sapphire ASA 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.