Correlation Between Kulicke and OZ Minerals
Can any of the company-specific risk be diversified away by investing in both Kulicke and OZ Minerals 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 OZ Minerals 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 OZ Minerals Limited, you can compare the effects of market volatilities on Kulicke and OZ Minerals 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 OZ Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kulicke and OZ Minerals.
Diversification Opportunities for Kulicke and OZ Minerals
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kulicke and OZMLF is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Kulicke and Soffa and OZ Minerals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OZ Minerals Limited 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 OZ Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OZ Minerals Limited has no effect on the direction of Kulicke i.e., Kulicke and OZ Minerals go up and down completely randomly.
Pair Corralation between Kulicke and OZ Minerals
If you would invest 4,633 in Kulicke and Soffa on September 19, 2024 and sell it today you would earn a total of 378.00 from holding Kulicke and Soffa or generate 8.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Kulicke and Soffa vs. OZ Minerals Limited
Performance |
| Timeline |
| Kulicke and Soffa |
| OZ Minerals Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kulicke and OZ Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kulicke and OZ Minerals
The main advantage of trading using opposite Kulicke and OZ Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kulicke position performs unexpectedly, OZ Minerals 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 OZ Minerals will offset losses from the drop in OZ Minerals' long position.The idea behind Kulicke and Soffa and OZ Minerals Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| OZ Minerals vs. MACOM Technology Solutions | OZ Minerals vs. NuRAN Wireless | OZ Minerals vs. Kulicke and Soffa | OZ Minerals vs. Analog Devices |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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