Correlation Between Kulicke and Air Products
Can any of the company-specific risk be diversified away by investing in both Kulicke and Air Products 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 Air Products 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 Air Products and, you can compare the effects of market volatilities on Kulicke and Air Products 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 Air Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kulicke and Air Products.
Diversification Opportunities for Kulicke and Air Products
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kulicke and Air is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Kulicke and Soffa and Air Products and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Products 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 Air Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Products has no effect on the direction of Kulicke i.e., Kulicke and Air Products go up and down completely randomly.
Pair Corralation between Kulicke and Air Products
Given the investment horizon of 90 days Kulicke is expected to generate 1.9 times less return on investment than Air Products. In addition to that, Kulicke is 2.29 times more volatile than Air Products and. It trades about 0.07 of its total potential returns per unit of risk. Air Products and is currently generating about 0.31 per unit of volatility. If you would invest 31,277 in Air Products and on August 31, 2024 and sell it today you would earn a total of 2,045 from holding Air Products and or generate 6.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kulicke and Soffa vs. Air Products and
Performance |
| Timeline |
| Kulicke and Soffa |
| Air Products |
Kulicke and Air Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kulicke and Air Products
The main advantage of trading using opposite Kulicke and Air Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kulicke position performs unexpectedly, Air Products 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 Air Products will offset losses from the drop in Air Products' long position.| Kulicke vs. Ultra Clean Holdings | Kulicke vs. Ichor Holdings | Kulicke vs. Entegris | Kulicke vs. Amtech Systems |
| Air Products vs. Eastman Chemical | Air Products vs. Linde plc Ordinary | Air Products vs. Ecolab Inc | Air Products vs. Sherwin Williams Co |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |