Correlation Between Kulicke and Summit Materials
Can any of the company-specific risk be diversified away by investing in both Kulicke and Summit Materials 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 Summit Materials 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 Summit Materials, you can compare the effects of market volatilities on Kulicke and Summit Materials 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 Summit Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kulicke and Summit Materials.
Diversification Opportunities for Kulicke and Summit Materials
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kulicke and Summit is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Kulicke and Soffa and Summit Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Materials 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 Summit Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Materials has no effect on the direction of Kulicke i.e., Kulicke and Summit Materials go up and down completely randomly.
Pair Corralation between Kulicke and Summit Materials
Given the investment horizon of 90 days Kulicke is expected to generate 6.71 times less return on investment than Summit Materials. In addition to that, Kulicke is 1.1 times more volatile than Summit Materials. It trades about 0.01 of its total potential returns per unit of risk. Summit Materials is currently generating about 0.09 per unit of volatility. If you would invest 3,700 in Summit Materials on February 13, 2024 and sell it today you would earn a total of 361.00 from holding Summit Materials or generate 9.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Kulicke and Soffa vs. Summit Materials
Performance |
Timeline |
Kulicke and Soffa |
Summit Materials |
Kulicke and Summit Materials Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kulicke and Summit Materials
The main advantage of trading using opposite Kulicke and Summit Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kulicke position performs unexpectedly, Summit Materials 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 Summit Materials will offset losses from the drop in Summit Materials' long position.Kulicke vs. Amtech Systems | Kulicke vs. Veeco Instruments | Kulicke vs. Cohu Inc | Kulicke vs. Onto Innovation |
Summit Materials vs. Cementos Pacasmayo SAA | Summit Materials vs. James Hardie Industries | Summit Materials vs. Eagle Materials | Summit Materials vs. Loma Negra Compania |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Stocks Directory Find actively traded stocks across global markets | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
CEOs Directory Screen CEOs from public companies around the world | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |