Correlation Between Kulicke and Cebu Air
Can any of the company-specific risk be diversified away by investing in both Kulicke and Cebu Air 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 Cebu Air 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 Cebu Air ADR, you can compare the effects of market volatilities on Kulicke and Cebu Air 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 Cebu Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kulicke and Cebu Air.
Diversification Opportunities for Kulicke and Cebu Air
Very good diversification
The 3 months correlation between Kulicke and Cebu is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Kulicke and Soffa and Cebu Air ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cebu Air ADR 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 Cebu Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cebu Air ADR has no effect on the direction of Kulicke i.e., Kulicke and Cebu Air go up and down completely randomly.
Pair Corralation between Kulicke and Cebu Air
If you would invest 185.00 in Cebu Air ADR on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Cebu Air ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Kulicke and Soffa vs. Cebu Air ADR
Performance |
| Timeline |
| Kulicke and Soffa |
| Cebu Air ADR |
Kulicke and Cebu Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kulicke and Cebu Air
The main advantage of trading using opposite Kulicke and Cebu Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kulicke position performs unexpectedly, Cebu Air 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 Cebu Air will offset losses from the drop in Cebu Air's long position.| Kulicke vs. Ultra Clean Holdings | Kulicke vs. Ichor Holdings | Kulicke vs. Entegris | Kulicke vs. Amtech Systems |
| Cebu Air vs. Skechers USA | Cebu Air vs. Rocky Brands | Cebu Air vs. Perseus Mining Limited | Cebu Air vs. Proficient Auto Logistics, |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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