Correlation Between Kulicke and Alphatec Holdings
Can any of the company-specific risk be diversified away by investing in both Kulicke and Alphatec Holdings 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 Alphatec Holdings 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 Alphatec Holdings, you can compare the effects of market volatilities on Kulicke and Alphatec Holdings 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 Alphatec Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kulicke and Alphatec Holdings.
Diversification Opportunities for Kulicke and Alphatec Holdings
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kulicke and Alphatec is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Kulicke and Soffa and Alphatec Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphatec Holdings 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 Alphatec Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphatec Holdings has no effect on the direction of Kulicke i.e., Kulicke and Alphatec Holdings go up and down completely randomly.
Pair Corralation between Kulicke and Alphatec Holdings
Given the investment horizon of 90 days Kulicke and Soffa is expected to under-perform the Alphatec Holdings. In addition to that, Kulicke is 1.17 times more volatile than Alphatec Holdings. It trades about -0.02 of its total potential returns per unit of risk. Alphatec Holdings is currently generating about 0.08 per unit of volatility. If you would invest 975.00 in Alphatec Holdings on March 15, 2025 and sell it today you would earn a total of 131.00 from holding Alphatec Holdings or generate 13.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kulicke and Soffa vs. Alphatec Holdings
Performance |
| Timeline |
| Kulicke and Soffa |
| Alphatec Holdings |
Kulicke and Alphatec Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kulicke and Alphatec Holdings
The main advantage of trading using opposite Kulicke and Alphatec Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kulicke position performs unexpectedly, Alphatec Holdings 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 Alphatec Holdings will offset losses from the drop in Alphatec Holdings' long position.| Kulicke vs. Ultra Clean Holdings | Kulicke vs. Ichor Holdings | Kulicke vs. Entegris | Kulicke vs. Amtech Systems |
| Alphatec Holdings vs. Globus Medical | Alphatec Holdings vs. Orthofix Medical | Alphatec Holdings vs. CONMED | Alphatec Holdings vs. LivaNova PLC |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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