Correlation Between KULR Technology and PAR Technology

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

Diversification Opportunities for KULR Technology and PAR Technology

0.65

Correlation Coefficient

KULR Technology  PAR Technology

Poor diversification

The 3 months correlation between KULR and PAR is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding KULR Technology Group and PAR Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PAR Technology 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 PAR Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PAR Technology has no effect on the direction of KULR Technology i.e., KULR Technology and PAR Technology go up and down completely randomly.

Pair Corralation between KULR Technology and PAR Technology

Given the investment horizon of 90 days KULR Technology Group is expected to under-perform the PAR Technology. In addition to that, KULR Technology is 2.79 times more volatile than PAR Technology. It trades about -0.16 of its total potential returns per unit of risk. PAR Technology is currently generating about -0.07 per unit of volatility. If you would invest  7,479  in PAR Technology on December 26, 2024 and sell it today you would lose (1,129) from holding PAR Technology or give up 15.1% of portfolio value over 90 days.

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

KULR Technology Group  vs.  PAR Technology

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.

PAR Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days PAR Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Even with abnormal performance in the last few months, the Stock's basic 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.

Pair Trading with KULR Technology and PAR Technology

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

The idea behind KULR Technology Group and PAR Technology 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.