Correlation Between Ynvisible Interactive and KULR Technology

Can any of the company-specific risk be diversified away by investing in both Ynvisible Interactive and KULR 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 Ynvisible Interactive and KULR Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ynvisible Interactive and KULR Technology Group, you can compare the effects of market volatilities on Ynvisible Interactive and KULR 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 Ynvisible Interactive with a short position of KULR Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ynvisible Interactive and KULR Technology.

Diversification Opportunities for Ynvisible Interactive and KULR Technology

-0.5

Correlation Coefficient

Ynvisible Interactive  KULR Technology

Very good diversification

The 3 months correlation between Ynvisible and KULR is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Ynvisible Interactive and KULR Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KULR Technology Group and Ynvisible Interactive 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 Ynvisible Interactive are associated (or correlated) with KULR Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KULR Technology Group has no effect on the direction of Ynvisible Interactive i.e., Ynvisible Interactive and KULR Technology go up and down completely randomly.

Pair Corralation between Ynvisible Interactive and KULR Technology

Assuming the 90 days horizon Ynvisible Interactive is expected to generate 1.37 times less return on investment than KULR Technology. But when comparing it to its historical volatility, Ynvisible Interactive is 4.15 times less risky than KULR Technology. It trades about 0.21 of its potential returns per unit of risk. KULR Technology Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  224.00  in KULR Technology Group on October 20, 2024 and sell it today you would earn a total of  4.00  from holding KULR Technology Group or generate 1.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

Ynvisible Interactive  vs.  KULR Technology Group

Ynvisible Interactive

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ynvisible Interactive has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Ynvisible Interactive is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

KULR Technology Group

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in KULR Technology Group are ranked lower than 20 (%) 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.

Pair Trading with Ynvisible Interactive and KULR Technology

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

The idea behind Ynvisible Interactive and KULR Technology Group 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.