Correlation Between MagnaChip Semiconductor and Kulicke
Can any of the company-specific risk be diversified away by investing in both MagnaChip Semiconductor 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 MagnaChip Semiconductor and Kulicke into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MagnaChip Semiconductor and Kulicke and Soffa, you can compare the effects of market volatilities on MagnaChip Semiconductor 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 MagnaChip Semiconductor with a short position of Kulicke. Check out your portfolio center. Please also check ongoing floating volatility patterns of MagnaChip Semiconductor and Kulicke.
Diversification Opportunities for MagnaChip Semiconductor and Kulicke
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MagnaChip and Kulicke is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding MagnaChip Semiconductor 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 MagnaChip Semiconductor 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 MagnaChip Semiconductor 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 MagnaChip Semiconductor i.e., MagnaChip Semiconductor and Kulicke go up and down completely randomly.
Pair Corralation between MagnaChip Semiconductor and Kulicke
Allowing for the 90-day total investment horizon MagnaChip Semiconductor is expected to under-perform the Kulicke. In addition to that, MagnaChip Semiconductor is 1.12 times more volatile than Kulicke and Soffa. It trades about -0.05 of its total potential returns per unit of risk. Kulicke and Soffa is currently generating about -0.01 per unit of volatility. If you would invest 5,260 in Kulicke and Soffa on November 7, 2024 and sell it today you would lose (920.00) from holding Kulicke and Soffa or give up 17.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MagnaChip Semiconductor vs. Kulicke and Soffa
Performance |
| Timeline |
| MagnaChip Semiconductor |
| Kulicke and Soffa |
MagnaChip Semiconductor and Kulicke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MagnaChip Semiconductor and Kulicke
The main advantage of trading using opposite MagnaChip Semiconductor and Kulicke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MagnaChip Semiconductor 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.| MagnaChip Semiconductor vs. CEVA Inc | MagnaChip Semiconductor vs. MACOM Technology Solutions | MagnaChip Semiconductor vs. FormFactor | MagnaChip Semiconductor vs. MaxLinear |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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