Correlation Between Daktronics and Kopin
Can any of the company-specific risk be diversified away by investing in both Daktronics 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 Daktronics and Kopin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daktronics and Kopin, you can compare the effects of market volatilities on Daktronics 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 Daktronics with a short position of Kopin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daktronics and Kopin.
Diversification Opportunities for Daktronics and Kopin
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Daktronics and Kopin is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Daktronics and Kopin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kopin and Daktronics 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 Daktronics 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 Daktronics i.e., Daktronics and Kopin go up and down completely randomly.
Pair Corralation between Daktronics and Kopin
Given the investment horizon of 90 days Daktronics is expected to generate 2.27 times less return on investment than Kopin. But when comparing it to its historical volatility, Daktronics is 2.49 times less risky than Kopin. It trades about 0.25 of its potential returns per unit of risk. Kopin is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 83.00 in Kopin on August 27, 2024 and sell it today you would earn a total of 25.00 from holding Kopin or generate 30.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daktronics vs. Kopin
Performance |
| Timeline |
| Daktronics |
| Kopin |
Daktronics and Kopin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daktronics and Kopin
The main advantage of trading using opposite Daktronics and Kopin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daktronics 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.| Daktronics vs. Plexus Corp | Daktronics vs. OSI Systems | Daktronics vs. CTS Corporation | Daktronics vs. Benchmark Electronics |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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