Correlation Between Fidelity National and Kulicke
Can any of the company-specific risk be diversified away by investing in both Fidelity National 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 Fidelity National and Kulicke into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity National Information and Kulicke and Soffa, you can compare the effects of market volatilities on Fidelity National 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 Fidelity National with a short position of Kulicke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity National and Kulicke.
Diversification Opportunities for Fidelity National and Kulicke
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidelity and Kulicke is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity National Information 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 Fidelity National 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 Fidelity National Information 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 Fidelity National i.e., Fidelity National and Kulicke go up and down completely randomly.
Pair Corralation between Fidelity National and Kulicke
Assuming the 90 days trading horizon Fidelity National Information is expected to under-perform the Kulicke. But the stock apears to be less risky and, when comparing its historical volatility, Fidelity National Information is 1.73 times less risky than Kulicke. The stock trades about -0.09 of its potential returns per unit of risk. The Kulicke and Soffa is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 4,370 in Kulicke and Soffa on August 31, 2024 and sell it today you would earn a total of 266.00 from holding Kulicke and Soffa or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Fidelity National Information vs. Kulicke and Soffa
Performance |
| Timeline |
| Fidelity National |
| Kulicke and Soffa |
Fidelity National and Kulicke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity National and Kulicke
The main advantage of trading using opposite Fidelity National and Kulicke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity National 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.| Fidelity National vs. SIEM OFFSHORE NEW | Fidelity National vs. WT OFFSHORE | Fidelity National vs. ATRESMEDIA | Fidelity National vs. KENEDIX OFFICE INV |
| Kulicke vs. Austevoll Seafood ASA | Kulicke vs. RETAIL FOOD GROUP | Kulicke vs. AUSNUTRIA DAIRY | Kulicke vs. TRADEGATE |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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