Correlation Between Kulicke and Osisko Development
Can any of the company-specific risk be diversified away by investing in both Kulicke and Osisko Development 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 Osisko Development 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 Osisko Development Corp, you can compare the effects of market volatilities on Kulicke and Osisko Development 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 Osisko Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kulicke and Osisko Development.
Diversification Opportunities for Kulicke and Osisko Development
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kulicke and Osisko is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Kulicke and Soffa and Osisko Development Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Development Corp 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 Osisko Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osisko Development Corp has no effect on the direction of Kulicke i.e., Kulicke and Osisko Development go up and down completely randomly.
Pair Corralation between Kulicke and Osisko Development
Given the investment horizon of 90 days Kulicke and Soffa is expected to generate 0.14 times more return on investment than Osisko Development. However, Kulicke and Soffa is 7.25 times less risky than Osisko Development. It trades about 0.08 of its potential returns per unit of risk. Osisko Development Corp is currently generating about -0.05 per unit of risk. If you would invest 4,326 in Kulicke and Soffa on October 24, 2024 and sell it today you would earn a total of 407.00 from holding Kulicke and Soffa or generate 9.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.1% |
| Values | Daily Returns |
Kulicke and Soffa vs. Osisko Development Corp
Performance |
| Timeline |
| Kulicke and Soffa |
| Osisko Development Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kulicke and Osisko Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kulicke and Osisko Development
The main advantage of trading using opposite Kulicke and Osisko Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kulicke position performs unexpectedly, Osisko Development 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 Osisko Development will offset losses from the drop in Osisko Development's long position.| Kulicke vs. First Solar | Kulicke vs. Sunrun Inc | Kulicke vs. Canadian Solar | Kulicke vs. SolarEdge Technologies |
| Osisko Development vs. ASML Holding NV | Osisko Development vs. Kulicke and Soffa | Osisko Development vs. Micron Technology | Osisko Development vs. Skyworks Solutions |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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