Correlation Between KULR Technology and Littelfuse

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

Diversification Opportunities for KULR Technology and Littelfuse

0.48

Correlation Coefficient

KULR Technology  Littelfuse

Very weak diversification

The 3 months correlation between KULR and Littelfuse is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding KULR Technology Group and Littelfuse in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Littelfuse 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 Littelfuse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Littelfuse has no effect on the direction of KULR Technology i.e., KULR Technology and Littelfuse go up and down completely randomly.

Pair Corralation between KULR Technology and Littelfuse

Given the investment horizon of 90 days KULR Technology Group is expected to under-perform the Littelfuse. In addition to that, KULR Technology is 4.64 times more volatile than Littelfuse. It trades about -0.16 of its total potential returns per unit of risk. Littelfuse is currently generating about -0.09 per unit of volatility. If you would invest  23,369  in Littelfuse on December 29, 2024 and sell it today you would lose (2,366) from holding Littelfuse or give up 10.12% of portfolio value over 90 days.

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

KULR Technology Group  vs.  Littelfuse

KULR Technology Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days KULR Technology Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with conflicting performance in the last few months, the Stock's essential indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Littelfuse

Risk-Adjusted Performance

Very Weak

Over the last 90 days Littelfuse has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with KULR Technology and Littelfuse

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

The idea behind KULR Technology Group and Littelfuse 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 Commodity Directory module to find actively traded commodities issued by global exchanges.