Correlation Between KULR Technology and Eltek

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

Diversification Opportunities for KULR Technology and Eltek

0.0

Correlation Coefficient

KULR Technology  Eltek

Pay attention - limited upside

The 3 months correlation between KULR and Eltek is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KULR Technology Group and Eltek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eltek 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 Eltek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eltek has no effect on the direction of KULR Technology i.e., KULR Technology and Eltek go up and down completely randomly.

Pair Corralation between KULR Technology and Eltek

Given the investment horizon of 90 days KULR Technology Group is expected to under-perform the Eltek. In addition to that, KULR Technology is 5.29 times more volatile than Eltek. It trades about -0.24 of its total potential returns per unit of risk. Eltek is currently generating about 0.11 per unit of volatility. If you would invest  1,083  in Eltek on December 5, 2024 and sell it today you would earn a total of  41.00  from holding Eltek or generate 3.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

KULR Technology Group  vs.  Eltek

KULR Technology Group

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in KULR Technology Group are ranked lower than 3 (%) 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.

Eltek

Risk-Adjusted Performance

Weak

Over the last 90 days Eltek has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Eltek is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with KULR Technology and Eltek

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

The idea behind KULR Technology Group and Eltek 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.