Correlation Between Kulicke and Camtek
Can any of the company-specific risk be diversified away by investing in both Kulicke and Camtek 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 Camtek 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 Camtek, you can compare the effects of market volatilities on Kulicke and Camtek 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 Camtek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kulicke and Camtek.
Diversification Opportunities for Kulicke and Camtek
Good diversification
The 3 months correlation between Kulicke and Camtek is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Kulicke and Soffa and Camtek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camtek 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 Camtek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camtek has no effect on the direction of Kulicke i.e., Kulicke and Camtek go up and down completely randomly.
Pair Corralation between Kulicke and Camtek
Given the investment horizon of 90 days Kulicke is expected to generate 2.73 times less return on investment than Camtek. But when comparing it to its historical volatility, Kulicke and Soffa is 1.47 times less risky than Camtek. It trades about 0.03 of its potential returns per unit of risk. Camtek is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 5,442 in Camtek on September 1, 2024 and sell it today you would earn a total of 2,008 from holding Camtek or generate 36.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kulicke and Soffa vs. Camtek
Performance |
| Timeline |
| Kulicke and Soffa |
| Camtek |
Kulicke and Camtek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kulicke and Camtek
The main advantage of trading using opposite Kulicke and Camtek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kulicke position performs unexpectedly, Camtek 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 Camtek will offset losses from the drop in Camtek's long position.| Kulicke vs. NXP Semiconductors NV | Kulicke vs. GSI Technology | Kulicke vs. MaxLinear | Kulicke vs. Texas Instruments Incorporated |
| Camtek vs. Onto Innovation | Camtek vs. Amtech Systems | Camtek vs. Veeco Instruments | Camtek vs. Ichor Holdings |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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