Correlation Between Axcelis Technologies and Kulicke
Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies 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 Axcelis Technologies and Kulicke into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and Kulicke and Soffa, you can compare the effects of market volatilities on Axcelis Technologies 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 Axcelis Technologies with a short position of Kulicke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and Kulicke.
Diversification Opportunities for Axcelis Technologies and Kulicke
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Axcelis and Kulicke is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies 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 Axcelis Technologies 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 Axcelis Technologies 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 Axcelis Technologies i.e., Axcelis Technologies and Kulicke go up and down completely randomly.
Pair Corralation between Axcelis Technologies and Kulicke
Given the investment horizon of 90 days Axcelis Technologies is expected to under-perform the Kulicke. In addition to that, Axcelis Technologies is 1.37 times more volatile than Kulicke and Soffa. It trades about -0.08 of its total potential returns per unit of risk. Kulicke and Soffa is currently generating about 0.03 per unit of volatility. If you would invest 4,635 in Kulicke and Soffa on August 24, 2024 and sell it today you would earn a total of 211.00 from holding Kulicke and Soffa or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axcelis Technologies vs. Kulicke and Soffa
Performance |
| Timeline |
| Axcelis Technologies |
| Kulicke and Soffa |
Axcelis Technologies and Kulicke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axcelis Technologies and Kulicke
The main advantage of trading using opposite Axcelis Technologies and Kulicke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies 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.| Axcelis Technologies vs. inTest | Axcelis Technologies vs. Lam Research Corp | Axcelis Technologies vs. Photronics | Axcelis Technologies vs. indie Semiconductor |
| Kulicke vs. Ultra Clean Holdings | Kulicke vs. Ichor Holdings | Kulicke vs. Entegris | Kulicke vs. Amtech Systems |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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