Correlation Between ASM Pacific and Kulicke
Can any of the company-specific risk be diversified away by investing in both ASM Pacific 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 ASM Pacific and Kulicke into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASM Pacific Technology and Kulicke and Soffa, you can compare the effects of market volatilities on ASM Pacific 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 ASM Pacific with a short position of Kulicke. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASM Pacific and Kulicke.
Diversification Opportunities for ASM Pacific and Kulicke
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ASM and Kulicke is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding ASM Pacific Technology 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 ASM Pacific 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 ASM Pacific Technology 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 ASM Pacific i.e., ASM Pacific and Kulicke go up and down completely randomly.
Pair Corralation between ASM Pacific and Kulicke
If you would invest 1,252 in ASM Pacific Technology on October 1, 2024 and sell it today you would earn a total of 0.00 from holding ASM Pacific Technology or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 4.76% |
Values | Daily Returns |
ASM Pacific Technology vs. Kulicke and Soffa
Performance |
Timeline |
ASM Pacific Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kulicke and Soffa |
ASM Pacific and Kulicke Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ASM Pacific and Kulicke
The main advantage of trading using opposite ASM Pacific and Kulicke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASM Pacific 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.ASM Pacific vs. Entegris | ASM Pacific vs. KLA Tencor | ASM Pacific vs. IPG Photonics | ASM Pacific vs. Lam Research Corp |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |