Correlation Between Kulicke and 456837AH6
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By analyzing existing cross correlation between Kulicke and Soffa and ING GROEP N, you can compare the effects of market volatilities on Kulicke and 456837AH6 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 Kulicke with a short position of 456837AH6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kulicke and 456837AH6.
Diversification Opportunities for Kulicke and 456837AH6
Excellent diversification
The 3 months correlation between Kulicke and 456837AH6 is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Kulicke and Soffa and ING GROEP N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ING GROEP N and Kulicke 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 Kulicke and Soffa are associated (or correlated) with 456837AH6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ING GROEP N has no effect on the direction of Kulicke i.e., Kulicke and 456837AH6 go up and down completely randomly.
Pair Corralation between Kulicke and 456837AH6
Given the investment horizon of 90 days Kulicke and Soffa is expected to generate 6.57 times more return on investment than 456837AH6. However, Kulicke is 6.57 times more volatile than ING GROEP N. It trades about 0.06 of its potential returns per unit of risk. ING GROEP N is currently generating about -0.16 per unit of risk. If you would invest 4,465 in Kulicke and Soffa on September 26, 2024 and sell it today you would earn a total of 335.00 from holding Kulicke and Soffa or generate 7.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 76.19% |
Values | Daily Returns |
Kulicke and Soffa vs. ING GROEP N
Performance |
Timeline |
Kulicke and Soffa |
ING GROEP N |
Kulicke and 456837AH6 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kulicke and 456837AH6
The main advantage of trading using opposite Kulicke and 456837AH6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kulicke position performs unexpectedly, 456837AH6 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 456837AH6 will offset losses from the drop in 456837AH6's long position.The idea behind Kulicke and Soffa and ING GROEP N 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.456837AH6 vs. Kulicke and Soffa | 456837AH6 vs. Jabil Circuit | 456837AH6 vs. Delek Drilling | 456837AH6 vs. Tenaris SA ADR |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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