Correlation Between Kulicke and Lakeland Industries
Can any of the company-specific risk be diversified away by investing in both Kulicke and Lakeland Industries 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 Lakeland Industries 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 Lakeland Industries, you can compare the effects of market volatilities on Kulicke and Lakeland Industries 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 Lakeland Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kulicke and Lakeland Industries.
Diversification Opportunities for Kulicke and Lakeland Industries
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kulicke and Lakeland is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Kulicke and Soffa and Lakeland Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakeland Industries 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 Lakeland Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakeland Industries has no effect on the direction of Kulicke i.e., Kulicke and Lakeland Industries go up and down completely randomly.
Pair Corralation between Kulicke and Lakeland Industries
Given the investment horizon of 90 days Kulicke is expected to generate 2.52 times less return on investment than Lakeland Industries. But when comparing it to its historical volatility, Kulicke and Soffa is 1.07 times less risky than Lakeland Industries. It trades about 0.18 of its potential returns per unit of risk. Lakeland Industries is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 1,856 in Lakeland Industries on September 1, 2024 and sell it today you would earn a total of 408.00 from holding Lakeland Industries or generate 21.98% 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. Lakeland Industries
Performance |
| Timeline |
| Kulicke and Soffa |
| Lakeland Industries |
Kulicke and Lakeland Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kulicke and Lakeland Industries
The main advantage of trading using opposite Kulicke and Lakeland Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kulicke position performs unexpectedly, Lakeland Industries 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 Lakeland Industries will offset losses from the drop in Lakeland Industries' long position.| Kulicke vs. NXP Semiconductors NV | Kulicke vs. ON Semiconductor | Kulicke vs. Lattice Semiconductor | Kulicke vs. GSI Technology |
| Lakeland Industries vs. Vince Holding Corp | Lakeland Industries vs. Oxford Industries | Lakeland Industries vs. Gildan Activewear | Lakeland Industries vs. Columbia Sportswear |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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