Correlation Between KULR Technology and Austevoll Seafood

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

Diversification Opportunities for KULR Technology and Austevoll Seafood

-0.4

Correlation Coefficient

KULR Technology  Austevoll Seafood

Very good diversification

The 3 months correlation between KULR and Austevoll is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding KULR Technology Group and Austevoll Seafood ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austevoll Seafood 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 Austevoll Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austevoll Seafood ASA has no effect on the direction of KULR Technology i.e., KULR Technology and Austevoll Seafood go up and down completely randomly.

Pair Corralation between KULR Technology and Austevoll Seafood

Given the investment horizon of 90 days KULR Technology Group is expected to generate 6.89 times more return on investment than Austevoll Seafood. However, KULR Technology is 6.89 times more volatile than Austevoll Seafood ASA. It trades about 0.09 of its potential returns per unit of risk. Austevoll Seafood ASA is currently generating about 0.11 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	Very Weak
Accuracy	54.65%
Values	Daily Returns

KULR Technology Group  vs.  Austevoll Seafood 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.

Austevoll Seafood ASA

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Austevoll Seafood ASA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Austevoll Seafood is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with KULR Technology and Austevoll Seafood

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

The idea behind KULR Technology Group and Austevoll Seafood 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.