Correlation Between KULR Technology and PowerFleet,

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

Diversification Opportunities for KULR Technology and PowerFleet,

0.79

Correlation Coefficient

KULR Technology  PowerFleet,

Poor diversification

The 3 months correlation between KULR and PowerFleet, is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding KULR Technology Group and PowerFleet, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PowerFleet, 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 PowerFleet,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PowerFleet, has no effect on the direction of KULR Technology i.e., KULR Technology and PowerFleet, go up and down completely randomly.

Pair Corralation between KULR Technology and PowerFleet,

Given the investment horizon of 90 days KULR Technology Group is expected to generate 4.12 times more return on investment than PowerFleet,. However, KULR Technology is 4.12 times more volatile than PowerFleet,. It trades about 0.28 of its potential returns per unit of risk. PowerFleet, is currently generating about 0.21 per unit of risk. If you would invest  46.00  in KULR Technology Group on September 12, 2024 and sell it today you would earn a total of  76.00  from holding KULR Technology Group or generate 165.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

KULR Technology Group  vs.  PowerFleet,

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.

PowerFleet,

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PowerFleet, are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, PowerFleet, unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KULR Technology and PowerFleet,

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

The idea behind KULR Technology Group and PowerFleet, 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.

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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.