Correlation Between Amtech Systems and Kulicke

Can any of the company-specific risk be diversified away by investing in both Amtech Systems 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 Amtech Systems and Kulicke into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amtech Systems and Kulicke and Soffa, you can compare the effects of market volatilities on Amtech Systems 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 Amtech Systems with a short position of Kulicke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtech Systems and Kulicke.

Diversification Opportunities for Amtech Systems and Kulicke

0.3

Correlation Coefficient

Amtech Systems  Kulicke

Weak diversification

The 3 months correlation between Amtech and Kulicke is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Amtech Systems 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 Amtech Systems 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 Amtech Systems 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 Amtech Systems i.e., Amtech Systems and Kulicke go up and down completely randomly.

Pair Corralation between Amtech Systems and Kulicke

Given the investment horizon of 90 days Amtech Systems is expected to generate 1.62 times more return on investment than Kulicke. However, Amtech Systems is 1.62 times more volatile than Kulicke and Soffa. It trades about 0.22 of its potential returns per unit of risk. Kulicke and Soffa is currently generating about 0.08 per unit of risk. If you would invest  476.00  in Amtech Systems on February 23, 2024 and sell it today you would earn a total of  59.00  from holding Amtech Systems or generate 12.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Amtech Systems  vs.  Kulicke and Soffa

Amtech Systems

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Amtech Systems are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Amtech Systems unveiled solid returns over the last few months and may actually be approaching a breakup point.

Kulicke and Soffa

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kulicke and Soffa has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward indicators, Kulicke is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Amtech Systems and Kulicke

The main advantage of trading using opposite Amtech Systems and Kulicke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtech Systems 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.

The idea behind Amtech Systems and Kulicke and Soffa pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.