Correlation Between Kulicke and SunLink Health
Can any of the company-specific risk be diversified away by investing in both Kulicke and SunLink Health 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 Kulicke and SunLink Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kulicke and Soffa and SunLink Health Systems, you can compare the effects of market volatilities on Kulicke and SunLink Health 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 Kulicke with a short position of SunLink Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kulicke and SunLink Health.
Diversification Opportunities for Kulicke and SunLink Health
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kulicke and SunLink is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kulicke and Soffa and SunLink Health Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunLink Health Systems and Kulicke 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 Kulicke and Soffa are associated (or correlated) with SunLink Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunLink Health Systems has no effect on the direction of Kulicke i.e., Kulicke and SunLink Health go up and down completely randomly.
Pair Corralation between Kulicke and SunLink Health
Given the investment horizon of 90 days Kulicke and Soffa is expected to generate 0.51 times more return on investment than SunLink Health. However, Kulicke and Soffa is 1.97 times less risky than SunLink Health. It trades about 0.18 of its potential returns per unit of risk. SunLink Health Systems is currently generating about 0.06 per unit of risk. If you would invest 3,838 in Kulicke and Soffa on September 6, 2024 and sell it today you would earn a total of 1,109 from holding Kulicke and Soffa or generate 28.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Kulicke and Soffa vs. SunLink Health Systems
Performance |
Timeline |
Kulicke and Soffa |
SunLink Health Systems |
Kulicke and SunLink Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kulicke and SunLink Health
The main advantage of trading using opposite Kulicke and SunLink Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kulicke position performs unexpectedly, SunLink Health 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 SunLink Health will offset losses from the drop in SunLink Health's long position.Kulicke vs. Ultra Clean Holdings | Kulicke vs. Ichor Holdings | Kulicke vs. Entegris | Kulicke vs. Amtech Systems |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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