Correlation Between Clean Energy and Kopin
Can any of the company-specific risk be diversified away by investing in both Clean Energy 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 Clean Energy and Kopin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clean Energy Pathway and Kopin, you can compare the effects of market volatilities on Clean Energy 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 Clean Energy with a short position of Kopin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clean Energy and Kopin.
Diversification Opportunities for Clean Energy and Kopin
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Clean and Kopin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Clean Energy Pathway and Kopin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kopin and Clean Energy 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 Clean Energy Pathway 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 Clean Energy i.e., Clean Energy and Kopin go up and down completely randomly.
Pair Corralation between Clean Energy and Kopin
Given the investment horizon of 90 days Clean Energy Pathway is expected to under-perform the Kopin. In addition to that, Clean Energy is 1.32 times more volatile than Kopin. It trades about -0.09 of its total potential returns per unit of risk. Kopin is currently generating about 0.12 per unit of volatility. If you would invest 82.00 in Kopin on November 3, 2024 and sell it today you would earn a total of 92.00 from holding Kopin or generate 112.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.4% |
| Values | Daily Returns |
Clean Energy Pathway vs. Kopin
Performance |
| Timeline |
| Clean Energy Pathway |
| Kopin |
Clean Energy and Kopin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clean Energy and Kopin
The main advantage of trading using opposite Clean Energy and Kopin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clean Energy 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.| Clean Energy vs. AT S Austria | Clean Energy vs. Alps Electric Co | Clean Energy vs. American Aires | Clean Energy vs. LGL Group |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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