Correlation Between Kulicke and ASE Industrial
Can any of the company-specific risk be diversified away by investing in both Kulicke and ASE Industrial 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 ASE Industrial 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 ASE Industrial Holding, you can compare the effects of market volatilities on Kulicke and ASE Industrial 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 ASE Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kulicke and ASE Industrial.
Diversification Opportunities for Kulicke and ASE Industrial
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kulicke and ASE is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Kulicke and Soffa and ASE Industrial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASE Industrial Holding 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 ASE Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASE Industrial Holding has no effect on the direction of Kulicke i.e., Kulicke and ASE Industrial go up and down completely randomly.
Pair Corralation between Kulicke and ASE Industrial
Given the investment horizon of 90 days Kulicke and Soffa is expected to generate 1.12 times more return on investment than ASE Industrial. However, Kulicke is 1.12 times more volatile than ASE Industrial Holding. It trades about 0.07 of its potential returns per unit of risk. ASE Industrial Holding is currently generating about -0.07 per unit of risk. If you would invest 4,606 in Kulicke and Soffa on August 31, 2024 and sell it today you would earn a total of 135.00 from holding Kulicke and Soffa or generate 2.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kulicke and Soffa vs. ASE Industrial Holding
Performance |
| Timeline |
| Kulicke and Soffa |
| ASE Industrial Holding |
Kulicke and ASE Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kulicke and ASE Industrial
The main advantage of trading using opposite Kulicke and ASE Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kulicke position performs unexpectedly, ASE Industrial 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 ASE Industrial will offset losses from the drop in ASE Industrial's long position.| Kulicke vs. Ultra Clean Holdings | Kulicke vs. Ichor Holdings | Kulicke vs. Entegris | Kulicke vs. Amtech Systems |
| ASE Industrial vs. United Microelectronics | ASE Industrial vs. Amkor Technology | ASE Industrial vs. Himax Technologies | ASE Industrial vs. Chunghwa Telecom 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |