Correlation Between Nordic Semiconductor and Kulicke
Can any of the company-specific risk be diversified away by investing in both Nordic 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 Nordic Semiconductor and Kulicke into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordic Semiconductor ASA and Kulicke and Soffa, you can compare the effects of market volatilities on Nordic 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 Nordic Semiconductor with a short position of Kulicke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Semiconductor and Kulicke.
Diversification Opportunities for Nordic Semiconductor and Kulicke
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nordic and Kulicke is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Semiconductor ASA 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 Nordic 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 Nordic Semiconductor ASA 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 Nordic Semiconductor i.e., Nordic Semiconductor and Kulicke go up and down completely randomly.
Pair Corralation between Nordic Semiconductor and Kulicke
Assuming the 90 days horizon Nordic Semiconductor ASA is expected to generate 4.11 times more return on investment than Kulicke. However, Nordic Semiconductor is 4.11 times more volatile than Kulicke and Soffa. It trades about 0.22 of its potential returns per unit of risk. Kulicke and Soffa is currently generating about -0.29 per unit of risk. If you would invest 920.00 in Nordic Semiconductor ASA on November 9, 2024 and sell it today you would earn a total of 299.00 from holding Nordic Semiconductor ASA or generate 32.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordic Semiconductor ASA vs. Kulicke and Soffa
Performance |
| Timeline |
| Nordic Semiconductor ASA |
| Kulicke and Soffa |
Nordic Semiconductor and Kulicke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Semiconductor and Kulicke
The main advantage of trading using opposite Nordic Semiconductor and Kulicke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic 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.| Nordic Semiconductor vs. Synaptics Incorporated | Nordic Semiconductor vs. MACOM Technology Solutions | Nordic Semiconductor vs. Silicon Laboratories | Nordic Semiconductor vs. Power Integrations |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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