Correlation Between XBP Europe and Kulicke
Can any of the company-specific risk be diversified away by investing in both XBP Europe 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 XBP Europe and Kulicke into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XBP Europe Holdings and Kulicke and Soffa, you can compare the effects of market volatilities on XBP Europe 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 XBP Europe with a short position of Kulicke. Check out your portfolio center. Please also check ongoing floating volatility patterns of XBP Europe and Kulicke.
Diversification Opportunities for XBP Europe and Kulicke
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between XBP and Kulicke is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding XBP Europe Holdings 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 XBP Europe 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 XBP Europe Holdings 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 XBP Europe i.e., XBP Europe and Kulicke go up and down completely randomly.
Pair Corralation between XBP Europe and Kulicke
Assuming the 90 days horizon XBP Europe Holdings is expected to generate 19.3 times more return on investment than Kulicke. However, XBP Europe is 19.3 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 0.18 per unit of risk. If you would invest 4.00 in XBP Europe Holdings on August 28, 2024 and sell it today you would lose (0.61) from holding XBP Europe Holdings or give up 15.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 52.38% |
| Values | Daily Returns |
XBP Europe Holdings vs. Kulicke and Soffa
Performance |
| Timeline |
| XBP Europe Holdings |
| Kulicke and Soffa |
XBP Europe and Kulicke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XBP Europe and Kulicke
The main advantage of trading using opposite XBP Europe and Kulicke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XBP Europe 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.| XBP Europe vs. GigaCloud Technology Class | XBP Europe vs. Arqit Quantum | XBP Europe vs. Telos Corp | XBP Europe vs. Cemtrex |
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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