Correlation Between Sapiens International and Kulicke
Can any of the company-specific risk be diversified away by investing in both Sapiens International 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 Sapiens International and Kulicke into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sapiens International and Kulicke and Soffa, you can compare the effects of market volatilities on Sapiens International 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 Sapiens International with a short position of Kulicke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sapiens International and Kulicke.
Diversification Opportunities for Sapiens International and Kulicke
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sapiens and Kulicke is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Sapiens International 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 Sapiens International 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 Sapiens International 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 Sapiens International i.e., Sapiens International and Kulicke go up and down completely randomly.
Pair Corralation between Sapiens International and Kulicke
Given the investment horizon of 90 days Sapiens International is expected to generate 0.99 times more return on investment than Kulicke. However, Sapiens International is 1.01 times less risky than Kulicke. It trades about 0.05 of its potential returns per unit of risk. Kulicke and Soffa is currently generating about 0.01 per unit of risk. If you would invest 1,768 in Sapiens International on August 29, 2024 and sell it today you would earn a total of 952.00 from holding Sapiens International or generate 53.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sapiens International vs. Kulicke and Soffa
Performance |
| Timeline |
| Sapiens International |
| Kulicke and Soffa |
Sapiens International and Kulicke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sapiens International and Kulicke
The main advantage of trading using opposite Sapiens International and Kulicke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sapiens International 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.| Sapiens International vs. Marin Software | Sapiens International vs. EzFill Holdings | Sapiens International vs. Trust Stamp | Sapiens International vs. Infobird Co |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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