Correlation Between Acm Research and Kulicke
Can any of the company-specific risk be diversified away by investing in both Acm Research 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 Acm Research and Kulicke into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acm Research and Kulicke and Soffa, you can compare the effects of market volatilities on Acm Research 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 Acm Research with a short position of Kulicke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acm Research and Kulicke.
Diversification Opportunities for Acm Research and Kulicke
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Acm and Kulicke is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Acm Research 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 Acm Research 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 Acm Research 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 Acm Research i.e., Acm Research and Kulicke go up and down completely randomly.
Pair Corralation between Acm Research and Kulicke
Given the investment horizon of 90 days Acm Research is expected to under-perform the Kulicke. In addition to that, Acm Research is 1.69 times more volatile than Kulicke and Soffa. It trades about -0.02 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 4,454 in Kulicke and Soffa on August 30, 2024 and sell it today you would earn a total of 287.00 from holding Kulicke and Soffa or generate 6.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acm Research vs. Kulicke and Soffa
Performance |
| Timeline |
| Acm Research |
| Kulicke and Soffa |
Acm Research and Kulicke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acm Research and Kulicke
The main advantage of trading using opposite Acm Research and Kulicke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acm Research 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.| Acm Research vs. First Solar | Acm Research vs. Sunrun Inc | Acm Research vs. Canadian Solar | Acm Research vs. SolarEdge Technologies |
| Kulicke vs. First Solar | Kulicke vs. Sunrun Inc | Kulicke vs. Canadian Solar | Kulicke vs. SolarEdge Technologies |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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