Correlation Between Kulicke and ZOOZ Power
Can any of the company-specific risk be diversified away by investing in both Kulicke and ZOOZ Power 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 ZOOZ Power 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 ZOOZ Power Ltd, you can compare the effects of market volatilities on Kulicke and ZOOZ Power 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 ZOOZ Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kulicke and ZOOZ Power.
Diversification Opportunities for Kulicke and ZOOZ Power
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kulicke and ZOOZ is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Kulicke and Soffa and ZOOZ Power Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZOOZ Power 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 ZOOZ Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZOOZ Power has no effect on the direction of Kulicke i.e., Kulicke and ZOOZ Power go up and down completely randomly.
Pair Corralation between Kulicke and ZOOZ Power
Given the investment horizon of 90 days Kulicke is expected to generate 2.4 times less return on investment than ZOOZ Power. But when comparing it to its historical volatility, Kulicke and Soffa is 1.49 times less risky than ZOOZ Power. It trades about 0.15 of its potential returns per unit of risk. ZOOZ Power Ltd is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 241.00 in ZOOZ Power Ltd on August 27, 2024 and sell it today you would earn a total of 40.00 from holding ZOOZ Power Ltd or generate 16.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kulicke and Soffa vs. ZOOZ Power Ltd
Performance |
| Timeline |
| Kulicke and Soffa |
| ZOOZ Power |
Kulicke and ZOOZ Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kulicke and ZOOZ Power
The main advantage of trading using opposite Kulicke and ZOOZ Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kulicke position performs unexpectedly, ZOOZ Power 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 ZOOZ Power will offset losses from the drop in ZOOZ Power's long position.The idea behind Kulicke and Soffa and ZOOZ Power Ltd 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.| ZOOZ Power vs. Pet Acquisition LLC | ZOOZ Power vs. Ulta Beauty | ZOOZ Power vs. Best Buy Co | ZOOZ Power vs. Dicks Sporting Goods |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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