Correlation Between Kulicke and 855244AK5

Can any of the company-specific risk be diversified away by investing in both Kulicke and 855244AK5 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 Kulicke and 855244AK5 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kulicke and Soffa and STARBUCKS P 245, you can compare the effects of market volatilities on Kulicke and 855244AK5 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 855244AK5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kulicke and 855244AK5.

Diversification Opportunities for Kulicke and 855244AK5

0.0

Correlation Coefficient

Kulicke  855244AK5

Pay attention - limited upside

The 3 months correlation between Kulicke and 855244AK5 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kulicke and Soffa and STARBUCKS P 245 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STARBUCKS P 245 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 855244AK5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STARBUCKS P 245 has no effect on the direction of Kulicke i.e., Kulicke and 855244AK5 go up and down completely randomly.

Pair Corralation between Kulicke and 855244AK5

If you would invest  3,913  in Kulicke and Soffa on September 12, 2024 and sell it today you would earn a total of  1,101  from holding Kulicke and Soffa or generate 28.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Kulicke and Soffa  vs.  STARBUCKS P 245

Kulicke and Soffa

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kulicke and Soffa are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak forward indicators, Kulicke exhibited solid returns over the last few months and may actually be approaching a breakup point.

STARBUCKS P 245

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days STARBUCKS P 245 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 855244AK5 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Kulicke and 855244AK5

The main advantage of trading using opposite Kulicke and 855244AK5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kulicke position performs unexpectedly, 855244AK5 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 855244AK5 will offset losses from the drop in 855244AK5's long position.

The idea behind Kulicke and Soffa and STARBUCKS P 245 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.