Correlation Between Kulicke and Entegris

Can any of the company-specific risk be diversified away by investing in both Kulicke and Entegris 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 Entegris 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 Entegris, you can compare the effects of market volatilities on Kulicke and Entegris 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 Entegris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kulicke and Entegris.

Diversification Opportunities for Kulicke and Entegris

0.7

Correlation Coefficient

Kulicke  Entegris

Poor diversification

The 3 months correlation between Kulicke and Entegris is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Kulicke and Soffa and Entegris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entegris 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 Entegris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entegris has no effect on the direction of Kulicke i.e., Kulicke and Entegris go up and down completely randomly.

Pair Corralation between Kulicke and Entegris

Given the investment horizon of 90 days Kulicke and Soffa is expected to generate 0.61 times more return on investment than Entegris. However, Kulicke and Soffa is 1.65 times less risky than Entegris. It trades about 0.03 of its potential returns per unit of risk. Entegris is currently generating about -0.03 per unit of risk. If you would invest  3,155  in Kulicke and Soffa on May 6, 2025 and sell it today you would earn a total of  76.00  from holding Kulicke and Soffa or generate 2.41% return on investment over 90 days.

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

Kulicke and Soffa  vs.  Entegris

Kulicke and Soffa

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kulicke and Soffa are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. 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.

Entegris

Risk-Adjusted Performance

Very Weak

Over the last 90 days Entegris has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Entegris is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Kulicke and Entegris

The main advantage of trading using opposite Kulicke and Entegris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kulicke position performs unexpectedly, Entegris 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 Entegris will offset losses from the drop in Entegris' long position.

The idea behind Kulicke and Soffa and Entegris 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.