Correlation Between Awilco Drilling and Kulicke
Can any of the company-specific risk be diversified away by investing in both Awilco Drilling 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 Awilco Drilling and Kulicke into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Awilco Drilling PLC and Kulicke and Soffa, you can compare the effects of market volatilities on Awilco Drilling 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 Awilco Drilling with a short position of Kulicke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Awilco Drilling and Kulicke.
Diversification Opportunities for Awilco Drilling and Kulicke
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Awilco and Kulicke is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Awilco Drilling PLC 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 Awilco Drilling 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 Awilco Drilling PLC 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 Awilco Drilling i.e., Awilco Drilling and Kulicke go up and down completely randomly.
Pair Corralation between Awilco Drilling and Kulicke
Assuming the 90 days horizon Awilco Drilling PLC is expected to generate 23.98 times more return on investment than Kulicke. However, Awilco Drilling is 23.98 times more volatile than Kulicke and Soffa. It trades about 0.06 of its potential returns per unit of risk. Kulicke and Soffa is currently generating about 0.0 per unit of risk. If you would invest 1,000.00 in Awilco Drilling PLC on September 4, 2024 and sell it today you would lose (808.00) from holding Awilco Drilling PLC or give up 80.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Awilco Drilling PLC vs. Kulicke and Soffa
Performance |
| Timeline |
| Awilco Drilling PLC |
| Kulicke and Soffa |
Awilco Drilling and Kulicke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Awilco Drilling and Kulicke
The main advantage of trading using opposite Awilco Drilling and Kulicke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Awilco Drilling 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.| Awilco Drilling vs. Park Hotels Resorts | Awilco Drilling vs. Biglari Holdings | Awilco Drilling vs. Dennys Corp | Awilco Drilling vs. Lifevantage |
| Kulicke vs. NXP Semiconductors NV | Kulicke vs. Analog Devices | Kulicke vs. Monolithic Power Systems | Kulicke vs. ON Semiconductor |
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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