Correlation Between First Solar and Kulicke
Can any of the company-specific risk be diversified away by investing in both First Solar 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 First Solar and Kulicke into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Solar and Kulicke and Soffa, you can compare the effects of market volatilities on First Solar 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 First Solar with a short position of Kulicke. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Solar and Kulicke.
Diversification Opportunities for First Solar and Kulicke
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between First and Kulicke is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding First Solar 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 First Solar 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 First Solar 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 First Solar i.e., First Solar and Kulicke go up and down completely randomly.
Pair Corralation between First Solar and Kulicke
Given the investment horizon of 90 days First Solar is expected to under-perform the Kulicke. In addition to that, First Solar is 1.52 times more volatile than Kulicke and Soffa. It trades about -0.18 of its total potential returns per unit of risk. Kulicke and Soffa is currently generating about -0.15 per unit of volatility. If you would invest 4,703 in Kulicke and Soffa on November 3, 2024 and sell it today you would lose (268.00) from holding Kulicke and Soffa or give up 5.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Solar vs. Kulicke and Soffa
Performance |
| Timeline |
| First Solar |
| Kulicke and Soffa |
First Solar and Kulicke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Solar and Kulicke
The main advantage of trading using opposite First Solar and Kulicke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Solar 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.| First Solar vs. Enphase Energy | First Solar vs. Sunrun Inc | First Solar vs. Canadian Solar | First Solar vs. SolarEdge Technologies |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |