Correlation Between 98138HAJ0 and Kulicke

Can any of the company-specific risk be diversified away by investing in both 98138HAJ0 and Kulicke 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 98138HAJ0 and Kulicke into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between WDAY 38 01 APR 32 and Kulicke and Soffa, you can compare the effects of market volatilities on 98138HAJ0 and Kulicke 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 98138HAJ0 with a short position of Kulicke. Check out your portfolio center. Please also check ongoing floating volatility patterns of 98138HAJ0 and Kulicke.

Diversification Opportunities for 98138HAJ0 and Kulicke

-0.33

Correlation Coefficient

98138HAJ0  Kulicke

Very good diversification

The 3 months correlation between 98138HAJ0 and Kulicke is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding WDAY 38 01 APR 32 and Kulicke and Soffa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kulicke and Soffa and 98138HAJ0 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 WDAY 38 01 APR 32 are associated (or correlated) with Kulicke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kulicke and Soffa has no effect on the direction of 98138HAJ0 i.e., 98138HAJ0 and Kulicke go up and down completely randomly.

Pair Corralation between 98138HAJ0 and Kulicke

Assuming the 90 days trading horizon WDAY 38 01 APR 32 is expected to generate 0.63 times more return on investment than Kulicke. However, WDAY 38 01 APR 32 is 1.58 times less risky than Kulicke. It trades about -0.27 of its potential returns per unit of risk. Kulicke and Soffa is currently generating about -0.22 per unit of risk. If you would invest  9,307  in WDAY 38 01 APR 32 on October 3, 2024 and sell it today you would lose (579.00) from holding WDAY 38 01 APR 32 or give up 6.22% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

WDAY 38 01 APR 32  vs.  Kulicke and Soffa

WDAY 38 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days WDAY 38 01 APR 32 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for WDAY 38 01 APR 32 investors.

Kulicke and Soffa

Risk-Adjusted Performance

3 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kulicke and Soffa are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound forward indicators, Kulicke is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with 98138HAJ0 and Kulicke

The main advantage of trading using opposite 98138HAJ0 and Kulicke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 98138HAJ0 position performs unexpectedly, Kulicke 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 Kulicke will offset losses from the drop in Kulicke's long position.

The idea behind WDAY 38 01 APR 32 and Kulicke and Soffa 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.