Correlation Between KULR Technology and Worldline

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

Diversification Opportunities for KULR Technology and Worldline

0.88

Correlation Coefficient

KULR Technology  Worldline

Very poor diversification

The 3 months correlation between KULR and Worldline is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding KULR Technology Group and Worldline SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Worldline SA 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 Worldline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Worldline SA has no effect on the direction of KULR Technology i.e., KULR Technology and Worldline go up and down completely randomly.

Pair Corralation between KULR Technology and Worldline

Given the investment horizon of 90 days KULR Technology Group is expected to generate 6.3 times more return on investment than Worldline. However, KULR Technology is 6.3 times more volatile than Worldline SA. It trades about 0.35 of its potential returns per unit of risk. Worldline SA is currently generating about 0.22 per unit of risk. If you would invest  132.00  in KULR Technology Group on October 6, 2024 and sell it today you would earn a total of  200.00  from holding KULR Technology Group or generate 151.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	95.24%
Values	Daily Returns

KULR Technology Group  vs.  Worldline SA

KULR Technology Group

Risk-Adjusted Performance

23 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in KULR Technology Group are ranked lower than 23 (%) 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.

Worldline SA

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Worldline SA are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Worldline reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KULR Technology and Worldline

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

The idea behind KULR Technology Group and Worldline SA 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.