Correlation Between KULR Technology and Swiss Life
Can any of the company-specific risk be diversified away by investing in both KULR Technology and Swiss Life 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 Swiss Life 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 Swiss Life Holding, you can compare the effects of market volatilities on KULR Technology and Swiss Life 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 Swiss Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of KULR Technology and Swiss Life.
Diversification Opportunities for KULR Technology and Swiss Life
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KULR and Swiss is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding KULR Technology Group and Swiss Life Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swiss Life Holding 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 Swiss Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swiss Life Holding has no effect on the direction of KULR Technology i.e., KULR Technology and Swiss Life go up and down completely randomly.
Pair Corralation between KULR Technology and Swiss Life
Given the investment horizon of 90 days KULR Technology Group is expected to generate 7.73 times more return on investment than Swiss Life. However, KULR Technology is 7.73 times more volatile than Swiss Life Holding. It trades about 0.05 of its potential returns per unit of risk. Swiss Life Holding is currently generating about 0.09 per unit of risk. If you would invest 98.00 in KULR Technology Group on December 4, 2024 and sell it today you would earn a total of 24.00 from holding KULR Technology Group or generate 24.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
KULR Technology Group vs. Swiss Life Holding
Performance |
Timeline |
KULR Technology Group |
Swiss Life Holding |
KULR Technology and Swiss Life Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KULR Technology and Swiss Life
The main advantage of trading using opposite KULR Technology and Swiss Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KULR Technology position performs unexpectedly, Swiss Life 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 Swiss Life will offset losses from the drop in Swiss Life's long position.KULR Technology vs. Richardson Electronics | KULR Technology vs. Interlink Electronics | KULR Technology vs. SigmaTron International | KULR Technology vs. Maris Tech |
Swiss Life vs. Zurich Insurance Group | Swiss Life vs. Allianz SE | Swiss Life vs. Swiss Life Holding | Swiss Life vs. Zurich Insurance Group |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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