Correlation Between Crimson Wine and KULR Technology

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Can any of the company-specific risk be diversified away by investing in both Crimson Wine 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 Crimson Wine and KULR Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crimson Wine and KULR Technology Group, you can compare the effects of market volatilities on Crimson Wine 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 Crimson Wine with a short position of KULR Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crimson Wine and KULR Technology.

Diversification Opportunities for Crimson Wine and KULR Technology

0.77
  Correlation Coefficient

Poor diversification

The 3 months correlation between Crimson and KULR is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Crimson Wine 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 Crimson Wine 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 Crimson Wine 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 Crimson Wine i.e., Crimson Wine and KULR Technology go up and down completely randomly.

Pair Corralation between Crimson Wine and KULR Technology

Given the investment horizon of 90 days Crimson Wine is expected to under-perform the KULR Technology. But the otc stock apears to be less risky and, when comparing its historical volatility, Crimson Wine is 4.37 times less risky than KULR Technology. The otc stock trades about -0.02 of its potential returns per unit of risk. The KULR Technology Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  416.00  in KULR Technology Group on September 9, 2025 and sell it today you would lose (29.00) from holding KULR Technology Group or give up 6.97% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy98.46%
ValuesDaily Returns

Crimson Wine  vs.  KULR Technology Group

 Performance 
       Timeline  
Crimson Wine 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Crimson Wine has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Crimson Wine is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.
KULR Technology Group 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Over the last 90 days KULR Technology Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable essential indicators, KULR Technology is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Crimson Wine and KULR Technology Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Crimson Wine and KULR Technology

The main advantage of trading using opposite Crimson Wine and KULR Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crimson Wine 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 Crimson Wine 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

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