Correlation Between Kulicke and Amtech Systems
Can any of the company-specific risk be diversified away by investing in both Kulicke and Amtech Systems 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 Amtech Systems 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 Amtech Systems, you can compare the effects of market volatilities on Kulicke and Amtech Systems 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 Amtech Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kulicke and Amtech Systems.
Diversification Opportunities for Kulicke and Amtech Systems
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kulicke and Amtech is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Kulicke and Soffa and Amtech Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amtech Systems 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 Amtech Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amtech Systems has no effect on the direction of Kulicke i.e., Kulicke and Amtech Systems go up and down completely randomly.
Pair Corralation between Kulicke and Amtech Systems
Given the investment horizon of 90 days Kulicke and Soffa is expected to generate 0.98 times more return on investment than Amtech Systems. However, Kulicke and Soffa is 1.02 times less risky than Amtech Systems. It trades about 0.01 of its potential returns per unit of risk. Amtech Systems is currently generating about -0.07 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kulicke and Soffa vs. Amtech Systems
Performance |
| Timeline |
| Kulicke and Soffa |
| Amtech Systems |
Kulicke and Amtech Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kulicke and Amtech Systems
The main advantage of trading using opposite Kulicke and Amtech Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kulicke position performs unexpectedly, Amtech Systems 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 Amtech Systems will offset losses from the drop in Amtech Systems' long position.| Kulicke vs. Diodes Incorporated | Kulicke vs. Daqo New Energy | Kulicke vs. Micron Technology | Kulicke vs. MagnaChip Semiconductor |
| Amtech Systems vs. Diodes Incorporated | Amtech Systems vs. Daqo New Energy | Amtech Systems vs. Micron Technology | Amtech Systems 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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