Correlation Between Kulicke and Aris Mining
Can any of the company-specific risk be diversified away by investing in both Kulicke and Aris Mining 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 Aris Mining 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 Aris Mining, you can compare the effects of market volatilities on Kulicke and Aris Mining 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 Aris Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kulicke and Aris Mining.
Diversification Opportunities for Kulicke and Aris Mining
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kulicke and Aris is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Kulicke and Soffa and Aris Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aris Mining 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 Aris Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aris Mining has no effect on the direction of Kulicke i.e., Kulicke and Aris Mining go up and down completely randomly.
Pair Corralation between Kulicke and Aris Mining
Given the investment horizon of 90 days Kulicke is expected to generate 21.57 times less return on investment than Aris Mining. But when comparing it to its historical volatility, Kulicke and Soffa is 2.04 times less risky than Aris Mining. It trades about 0.01 of its potential returns per unit of risk. Aris Mining is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 349.00 in Aris Mining on October 23, 2024 and sell it today you would earn a total of 21.50 from holding Aris Mining or generate 6.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kulicke and Soffa vs. Aris Mining
Performance |
| Timeline |
| Kulicke and Soffa |
| Aris Mining |
Kulicke and Aris Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kulicke and Aris Mining
The main advantage of trading using opposite Kulicke and Aris Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kulicke position performs unexpectedly, Aris Mining 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 Aris Mining will offset losses from the drop in Aris Mining's long position.| Kulicke vs. Ultra Clean Holdings | Kulicke vs. Ichor Holdings | Kulicke vs. Entegris | Kulicke vs. Amtech Systems |
| Aris Mining vs. Sonos Inc | Aris Mining vs. Kulicke and Soffa | Aris Mining vs. IPG Photonics | Aris Mining vs. Verra Mobility Corp |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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