Correlation Between Skechers USA and Kulicke
Can any of the company-specific risk be diversified away by investing in both Skechers USA 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 Skechers USA and Kulicke into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skechers USA and Kulicke and Soffa, you can compare the effects of market volatilities on Skechers USA 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 Skechers USA with a short position of Kulicke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skechers USA and Kulicke.
Diversification Opportunities for Skechers USA and Kulicke
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Skechers and Kulicke is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Skechers USA 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 Skechers USA 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 Skechers USA 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 Skechers USA i.e., Skechers USA and Kulicke go up and down completely randomly.
Pair Corralation between Skechers USA and Kulicke
Considering the 90-day investment horizon Skechers USA is expected to generate 0.84 times more return on investment than Kulicke. However, Skechers USA is 1.18 times less risky than Kulicke. It trades about 0.02 of its potential returns per unit of risk. Kulicke and Soffa is currently generating about 0.0 per unit of risk. If you would invest 5,974 in Skechers USA on September 2, 2024 and sell it today you would earn a total of 408.00 from holding Skechers USA or generate 6.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Skechers USA vs. Kulicke and Soffa
Performance |
| Timeline |
| Skechers USA |
| Kulicke and Soffa |
Skechers USA and Kulicke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skechers USA and Kulicke
The main advantage of trading using opposite Skechers USA and Kulicke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skechers USA 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.| Skechers USA vs. Crocs Inc | Skechers USA vs. On Holding | Skechers USA vs. Nike Inc | Skechers USA vs. Designer Brands |
| 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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