Correlation Between Ming Shing and Kulicke
Can any of the company-specific risk be diversified away by investing in both Ming Shing and Kulicke 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 Ming Shing and Kulicke into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ming Shing Group and Kulicke and Soffa, you can compare the effects of market volatilities on Ming Shing and Kulicke 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 Ming Shing with a short position of Kulicke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Shing and Kulicke.
Diversification Opportunities for Ming Shing and Kulicke
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ming and Kulicke is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ming Shing Group and Kulicke and Soffa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kulicke and Soffa and Ming Shing 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 Ming Shing Group are associated (or correlated) with Kulicke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kulicke and Soffa has no effect on the direction of Ming Shing i.e., Ming Shing and Kulicke go up and down completely randomly.
Pair Corralation between Ming Shing and Kulicke
Considering the 90-day investment horizon Ming Shing Group is expected to generate 9.75 times more return on investment than Kulicke. However, Ming Shing is 9.75 times more volatile than Kulicke and Soffa. It trades about 0.14 of its potential returns per unit of risk. Kulicke and Soffa is currently generating about -0.3 per unit of risk. If you would invest 584.00 in Ming Shing Group on October 15, 2024 and sell it today you would earn a total of 135.00 from holding Ming Shing Group or generate 23.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Shing Group vs. Kulicke and Soffa
Performance |
| Timeline |
| Ming Shing Group |
| Kulicke and Soffa |
Ming Shing and Kulicke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Shing and Kulicke
The main advantage of trading using opposite Ming Shing and Kulicke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Shing position performs unexpectedly, Kulicke 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 Kulicke will offset losses from the drop in Kulicke's long position.The idea behind Ming Shing Group and Kulicke and Soffa 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.| Kulicke vs. Ultra Clean Holdings | Kulicke vs. Ichor Holdings | Kulicke vs. Entegris | Kulicke vs. Amtech Systems |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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