Correlation Between Himax Technologies and Kopin
Can any of the company-specific risk be diversified away by investing in both Himax Technologies 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 Himax Technologies and Kopin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Himax Technologies and Kopin, you can compare the effects of market volatilities on Himax Technologies 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 Himax Technologies with a short position of Kopin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Himax Technologies and Kopin.
Diversification Opportunities for Himax Technologies and Kopin
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Himax and Kopin is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Himax Technologies and Kopin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kopin and Himax Technologies 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 Himax Technologies 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 Himax Technologies i.e., Himax Technologies and Kopin go up and down completely randomly.
Pair Corralation between Himax Technologies and Kopin
Given the investment horizon of 90 days Himax Technologies is expected to under-perform the Kopin. But the stock apears to be less risky and, when comparing its historical volatility, Himax Technologies is 3.18 times less risky than Kopin. The stock trades about -0.01 of its potential returns per unit of risk. The Kopin is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 86.00 in Kopin on September 3, 2024 and sell it today you would earn a total of 32.00 from holding Kopin or generate 37.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Himax Technologies vs. Kopin
Performance |
| Timeline |
| Himax Technologies |
| Kopin |
Himax Technologies and Kopin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Himax Technologies and Kopin
The main advantage of trading using opposite Himax Technologies and Kopin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Himax Technologies 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.| Himax Technologies vs. Silicon Motion Technology | Himax Technologies vs. ASE Industrial Holding | Himax Technologies vs. SemiLEDS | Himax Technologies vs. MaxLinear |
| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |