Correlation Between Alpha En and Kopin
Can any of the company-specific risk be diversified away by investing in both Alpha En and Kopin 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 Alpha En and Kopin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between alpha En and Kopin, you can compare the effects of market volatilities on Alpha En and Kopin 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 Alpha En with a short position of Kopin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpha En and Kopin.
Diversification Opportunities for Alpha En and Kopin
Very weak diversification
The 3 months correlation between Alpha and Kopin is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding alpha En and Kopin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kopin and Alpha En 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 alpha En are associated (or correlated) with Kopin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kopin has no effect on the direction of Alpha En i.e., Alpha En and Kopin go up and down completely randomly.
Pair Corralation between Alpha En and Kopin
Given the investment horizon of 90 days alpha En is expected to generate 4.39 times more return on investment than Kopin. However, Alpha En is 4.39 times more volatile than Kopin. It trades about 0.21 of its potential returns per unit of risk. Kopin is currently generating about -0.23 per unit of risk. If you would invest 0.01 in alpha En on November 28, 2024 and sell it today you would earn a total of 0.01 from holding alpha En or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
alpha En vs. Kopin
Performance |
| Timeline |
| alpha En |
| Kopin |
Alpha En and Kopin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alpha En and Kopin
The main advantage of trading using opposite Alpha En and Kopin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alpha En position performs unexpectedly, Kopin 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 Kopin will offset losses from the drop in Kopin's long position.| Alpha En vs. Alps Electric Co | Alpha En vs. Bitmine Immersion Technologies | Alpha En vs. American Aires | Alpha En vs. AT S Austria |
| Kopin vs. Universal Display | Kopin vs. Daktronics | Kopin vs. KULR Technology Group | Kopin vs. LightPath Technologies |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |