Correlation Between Kulicke and Cohu
Can any of the company-specific risk be diversified away by investing in both Kulicke and Cohu 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 Cohu 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 Cohu Inc, you can compare the effects of market volatilities on Kulicke and Cohu 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 Cohu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kulicke and Cohu.
Diversification Opportunities for Kulicke and Cohu
Poor diversification
The 3 months correlation between Kulicke and Cohu is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Kulicke and Soffa and Cohu Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohu Inc 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 Cohu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohu Inc has no effect on the direction of Kulicke i.e., Kulicke and Cohu go up and down completely randomly.
Pair Corralation between Kulicke and Cohu
Given the investment horizon of 90 days Kulicke and Soffa is expected to generate 0.52 times more return on investment than Cohu. However, Kulicke and Soffa is 1.91 times less risky than Cohu. It trades about 0.03 of its potential returns per unit of risk. Cohu Inc is currently generating about -0.08 per unit of risk. If you would invest 4,707 in Kulicke and Soffa on October 20, 2024 and sell it today you would earn a total of 26.00 from holding Kulicke and Soffa or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kulicke and Soffa vs. Cohu Inc
Performance |
| Timeline |
| Kulicke and Soffa |
| Cohu Inc |
Kulicke and Cohu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kulicke and Cohu
The main advantage of trading using opposite Kulicke and Cohu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kulicke position performs unexpectedly, Cohu 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 Cohu will offset losses from the drop in Cohu's long position.| Kulicke vs. Ultra Clean Holdings | Kulicke vs. Ichor Holdings | Kulicke vs. Entegris | Kulicke vs. Amtech Systems |
| Cohu vs. Onto Innovation | Cohu vs. Photronics | Cohu vs. Ultra Clean Holdings | Cohu vs. Axcelis Technologies |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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