Correlation Between Hawkins and Kulicke
Can any of the company-specific risk be diversified away by investing in both Hawkins 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 Hawkins and Kulicke into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hawkins and Kulicke and Soffa, you can compare the effects of market volatilities on Hawkins 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 Hawkins with a short position of Kulicke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawkins and Kulicke.
Diversification Opportunities for Hawkins and Kulicke
Very weak diversification
The 3 months correlation between Hawkins and Kulicke is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Hawkins 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 Hawkins 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 Hawkins 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 Hawkins i.e., Hawkins and Kulicke go up and down completely randomly.
Pair Corralation between Hawkins and Kulicke
Given the investment horizon of 90 days Hawkins is expected to generate 1.05 times more return on investment than Kulicke. However, Hawkins is 1.05 times more volatile than Kulicke and Soffa. It trades about 0.15 of its potential returns per unit of risk. Kulicke and Soffa is currently generating about 0.04 per unit of risk. If you would invest 8,475 in Hawkins on September 2, 2024 and sell it today you would earn a total of 4,976 from holding Hawkins or generate 58.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hawkins vs. Kulicke and Soffa
Performance |
| Timeline |
| Hawkins |
| Kulicke and Soffa |
Hawkins and Kulicke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hawkins and Kulicke
The main advantage of trading using opposite Hawkins and Kulicke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawkins 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.| Hawkins vs. H B Fuller | Hawkins vs. Minerals Technologies | Hawkins vs. Quaker Chemical | Hawkins vs. Oil Dri |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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