Correlation Between Kulicke and Hawkins
Can any of the company-specific risk be diversified away by investing in both Kulicke and Hawkins 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 Hawkins 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 Hawkins, you can compare the effects of market volatilities on Kulicke and Hawkins 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 Hawkins. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kulicke and Hawkins.
Diversification Opportunities for Kulicke and Hawkins
Very weak diversification
The 3 months correlation between Kulicke and Hawkins is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Kulicke and Soffa and Hawkins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawkins 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 Hawkins. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawkins has no effect on the direction of Kulicke i.e., Kulicke and Hawkins go up and down completely randomly.
Pair Corralation between Kulicke and Hawkins
Given the investment horizon of 90 days Kulicke is expected to generate 3.5 times less return on investment than Hawkins. But when comparing it to its historical volatility, Kulicke and Soffa is 1.05 times less risky than Hawkins. It trades about 0.04 of its potential returns per unit of risk. Hawkins is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 8,475 in Hawkins on September 2, 2024 and sell it today you would earn a total of 4,976 from holding Hawkins or generate 58.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kulicke and Soffa vs. Hawkins
Performance |
| Timeline |
| Kulicke and Soffa |
| Hawkins |
Kulicke and Hawkins Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kulicke and Hawkins
The main advantage of trading using opposite Kulicke and Hawkins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kulicke position performs unexpectedly, Hawkins 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 Hawkins will offset losses from the drop in Hawkins' long position.| Kulicke vs. Ultra Clean Holdings | Kulicke vs. Ichor Holdings | Kulicke vs. Entegris | Kulicke vs. Amtech Systems |
| Hawkins vs. H B Fuller | Hawkins vs. Minerals Technologies | Hawkins vs. Quaker Chemical | Hawkins vs. Oil Dri |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |