Correlation Between Kulicke and Stingray
Can any of the company-specific risk be diversified away by investing in both Kulicke and Stingray 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 Stingray 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 Stingray Group, you can compare the effects of market volatilities on Kulicke and Stingray 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 Stingray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kulicke and Stingray.
Diversification Opportunities for Kulicke and Stingray
Very weak diversification
The 3 months correlation between Kulicke and Stingray is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Kulicke and Soffa and Stingray Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stingray Group 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 Stingray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stingray Group has no effect on the direction of Kulicke i.e., Kulicke and Stingray go up and down completely randomly.
Pair Corralation between Kulicke and Stingray
Given the investment horizon of 90 days Kulicke and Soffa is expected to generate 1.01 times more return on investment than Stingray. However, Kulicke is 1.01 times more volatile than Stingray Group. It trades about -0.05 of its potential returns per unit of risk. Stingray Group is currently generating about -0.21 per unit of risk. If you would invest 4,823 in Kulicke and Soffa on October 7, 2024 and sell it today you would lose (91.00) from holding Kulicke and Soffa or give up 1.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Kulicke and Soffa vs. Stingray Group
Performance |
| Timeline |
| Kulicke and Soffa |
| Stingray Group |
Kulicke and Stingray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kulicke and Stingray
The main advantage of trading using opposite Kulicke and Stingray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kulicke position performs unexpectedly, Stingray 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 Stingray will offset losses from the drop in Stingray's long position.| Kulicke vs. Ultra Clean Holdings | Kulicke vs. Ichor Holdings | Kulicke vs. Entegris | Kulicke vs. Amtech Systems |
| Stingray vs. XCPCNL Business Services | Stingray vs. International Consolidated Companies | Stingray vs. Mills Music Trust | Stingray vs. Citrine Global Corp |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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