Correlation Between Kulicke and Ambarella
Can any of the company-specific risk be diversified away by investing in both Kulicke and Ambarella 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 Ambarella 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 Ambarella, you can compare the effects of market volatilities on Kulicke and Ambarella 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 Ambarella. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kulicke and Ambarella.
Diversification Opportunities for Kulicke and Ambarella
Good diversification
The 3 months correlation between Kulicke and Ambarella is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Kulicke and Soffa and Ambarella in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambarella 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 Ambarella. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambarella has no effect on the direction of Kulicke i.e., Kulicke and Ambarella go up and down completely randomly.
Pair Corralation between Kulicke and Ambarella
Given the investment horizon of 90 days Kulicke and Soffa is expected to under-perform the Ambarella. But the stock apears to be less risky and, when comparing its historical volatility, Kulicke and Soffa is 1.43 times less risky than Ambarella. The stock trades about -0.01 of its potential returns per unit of risk. The Ambarella is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 9,506 in Ambarella on November 5, 2024 and sell it today you would lose (1,691) from holding Ambarella or give up 17.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Kulicke and Soffa vs. Ambarella
Performance |
| Timeline |
| Kulicke and Soffa |
| Ambarella |
Kulicke and Ambarella Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kulicke and Ambarella
The main advantage of trading using opposite Kulicke and Ambarella positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kulicke position performs unexpectedly, Ambarella 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 Ambarella will offset losses from the drop in Ambarella's long position.| Kulicke vs. Ultra Clean Holdings | Kulicke vs. Ichor Holdings | Kulicke vs. Entegris | Kulicke vs. Amtech Systems |
| Ambarella vs. Axcelis Technologies | Ambarella vs. Kulicke and Soffa | Ambarella vs. Ultra Clean Holdings | Ambarella vs. Cohu Inc |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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