Correlation Between RETAIL FOOD and Kulicke
Can any of the company-specific risk be diversified away by investing in both RETAIL FOOD 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 RETAIL FOOD and Kulicke into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RETAIL FOOD GROUP and Kulicke and Soffa, you can compare the effects of market volatilities on RETAIL FOOD 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 RETAIL FOOD with a short position of Kulicke. Check out your portfolio center. Please also check ongoing floating volatility patterns of RETAIL FOOD and Kulicke.
Diversification Opportunities for RETAIL FOOD and Kulicke
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between RETAIL and Kulicke is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding RETAIL FOOD GROUP 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 RETAIL FOOD 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 RETAIL FOOD GROUP 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 RETAIL FOOD i.e., RETAIL FOOD and Kulicke go up and down completely randomly.
Pair Corralation between RETAIL FOOD and Kulicke
Assuming the 90 days trading horizon RETAIL FOOD GROUP is expected to generate 1.02 times more return on investment than Kulicke. However, RETAIL FOOD is 1.02 times more volatile than Kulicke and Soffa. It trades about 0.22 of its potential returns per unit of risk. Kulicke and Soffa is currently generating about 0.11 per unit of risk. If you would invest 3.70 in RETAIL FOOD GROUP on August 31, 2024 and sell it today you would earn a total of 0.45 from holding RETAIL FOOD GROUP or generate 12.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
RETAIL FOOD GROUP vs. Kulicke and Soffa
Performance |
| Timeline |
| RETAIL FOOD GROUP |
| Kulicke and Soffa |
RETAIL FOOD and Kulicke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RETAIL FOOD and Kulicke
The main advantage of trading using opposite RETAIL FOOD and Kulicke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RETAIL FOOD 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.| RETAIL FOOD vs. Apple Inc | RETAIL FOOD vs. Apple Inc | RETAIL FOOD vs. Apple Inc | RETAIL FOOD vs. Apple Inc |
| Kulicke vs. Austevoll Seafood ASA | Kulicke vs. RETAIL FOOD GROUP | Kulicke vs. AUSNUTRIA DAIRY | Kulicke vs. TRADEGATE |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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