Correlation Between Kulicke and Clearfield
Can any of the company-specific risk be diversified away by investing in both Kulicke and Clearfield 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 Clearfield 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 Clearfield, you can compare the effects of market volatilities on Kulicke and Clearfield 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 Clearfield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kulicke and Clearfield.
Diversification Opportunities for Kulicke and Clearfield
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kulicke and Clearfield is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Kulicke and Soffa and Clearfield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearfield 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 Clearfield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearfield has no effect on the direction of Kulicke i.e., Kulicke and Clearfield go up and down completely randomly.
Pair Corralation between Kulicke and Clearfield
Given the investment horizon of 90 days Kulicke and Soffa is expected to generate 0.71 times more return on investment than Clearfield. However, Kulicke and Soffa is 1.41 times less risky than Clearfield. It trades about 0.01 of its potential returns per unit of risk. Clearfield is currently generating about -0.27 per unit of risk. If you would invest 4,744 in Kulicke and Soffa on August 30, 2024 and sell it today you would lose (3.00) from holding Kulicke and Soffa or give up 0.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kulicke and Soffa vs. Clearfield
Performance |
| Timeline |
| Kulicke and Soffa |
| Clearfield |
Kulicke and Clearfield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kulicke and Clearfield
The main advantage of trading using opposite Kulicke and Clearfield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kulicke position performs unexpectedly, Clearfield 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 Clearfield will offset losses from the drop in Clearfield's long position.| Kulicke vs. First Solar | Kulicke vs. Sunrun Inc | Kulicke vs. Canadian Solar | Kulicke vs. SolarEdge Technologies |
| Clearfield vs. Comtech Telecommunications Corp | Clearfield vs. Knowles Cor | Clearfield vs. Extreme Networks | Clearfield vs. KVH Industries |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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