Correlation Between Kulicke and Axcelis Technologies
Can any of the company-specific risk be diversified away by investing in both Kulicke and Axcelis Technologies 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 Kulicke and Axcelis Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kulicke and Soffa and Axcelis Technologies, you can compare the effects of market volatilities on Kulicke and Axcelis Technologies 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 Kulicke with a short position of Axcelis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kulicke and Axcelis Technologies.
Diversification Opportunities for Kulicke and Axcelis Technologies
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kulicke and Axcelis is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Kulicke and Soffa and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies and Kulicke 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 Kulicke and Soffa are associated (or correlated) with Axcelis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axcelis Technologies has no effect on the direction of Kulicke i.e., Kulicke and Axcelis Technologies go up and down completely randomly.
Pair Corralation between Kulicke and Axcelis Technologies
Given the investment horizon of 90 days Kulicke and Soffa is expected to generate 0.95 times more return on investment than Axcelis Technologies. However, Kulicke and Soffa is 1.05 times less risky than Axcelis Technologies. It trades about 0.01 of its potential returns per unit of risk. Axcelis Technologies is currently generating about -0.2 per unit of risk. If you would invest 4,387 in Kulicke and Soffa on October 31, 2024 and sell it today you would earn a total of 3.00 from holding Kulicke and Soffa or generate 0.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kulicke and Soffa vs. Axcelis Technologies
Performance |
| Timeline |
| Kulicke and Soffa |
| Axcelis Technologies |
Kulicke and Axcelis Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kulicke and Axcelis Technologies
The main advantage of trading using opposite Kulicke and Axcelis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kulicke position performs unexpectedly, Axcelis Technologies 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 Axcelis Technologies will offset losses from the drop in Axcelis Technologies' long position.| Kulicke vs. Diodes Incorporated | Kulicke vs. Daqo New Energy | Kulicke vs. Micron Technology | Kulicke vs. MagnaChip Semiconductor |
| Axcelis Technologies vs. Diodes Incorporated | Axcelis Technologies vs. Daqo New Energy | Axcelis Technologies vs. Micron Technology | Axcelis Technologies vs. MagnaChip 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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